IEA Scales Back Iraq Forecast

While the IEA still predicts that Iraqi output will rise over the coming years its forecasts have repeatedly been revised down due to security concerns and pressure that cash-strapped Baghdad has put on IOCs to cut investment. The IEA now sees Iraq producing just 4.4mn b/d by 2020, up a mere 300,000 b/d on the country’s average output over the last six months. As recently as two years ago, the IEA was forecasting 5.8mn b/d by 2020 and 6.7mn b/d by 2025. BP’s Mideast chief Michael Townsend concurs. “It’s difficult to see a massive ramp up [in Iraqi output] next year”. (CONTINUED - 126 WORDS)