Oil Daily | Iraq Boosts Oil Exports Amid OPEC Quota Challenges and Plans Output Cuts

【Latest Oil Policies】

India's federal government is engaging with state governments to increase renewable energy purchases for power generation. Despite a reliance on coal, India aims to accelerate the clean energy transition, unveiling a national geothermal policy and launching a carbon capture program with government incentives to reduce coal emissions.

【Oil-Producing Countries Dynamics】

Iran's natural gas exports to Iraq declined by 40% between April and August, extending a trend from 2024. Iraq struggles to develop its gas resources, relying on imports. A plan to import gas from Turkmenistan is suspended, as it involves a pipeline through sanction-hit Iran, posing risks of U.S. sanctions.

Iraq increased its oil exports as part of OPEC's phased easing of production cuts. The boost in shipments aims to generate additional revenue but highlights Iraq's challenge of balancing revenue generation with OPEC's production quotas. Iraq's overproduction has attracted scrutiny, and it plans further output cuts to compensate for past overproduction.

【Others】

Global nuclear power generation is expected to decline due to insufficient investment and aging facilities, despite a record 2024. The World Nuclear Industry Status Report highlighted the need for 44 new plants to maintain momentum, alongside challenges like cost overruns and competition from renewable technologies like wind and solar.