Nigeria, Iraq agree to cut oil output

The Organisation of Petroleum Exporting Countries (OPEC) has agreed to trim oil output by asking over-producing members Iraq and Nigeria to bring production in line with their targets.

The group is striving to prevent a glut amid soaring U.S. production and a slowing global economy.

Nigeria is to reduce supply by 57,000 barrels per day (bpd) while Iraq, OPEC’s second-largest oil producer, pledged to reduce output by 175,000 bpd by October. Better compliance will deliver an output cut of more than 400,000 bpd, two OPEC+ sources said.

Oil prices have dropped below $60 per barrel in recent weeks from their 2019 peaks of $75 as fears of a global recession outweigh concerns about falling supply from sanctions-hit Iran and Venezuela.