Basrah Oil Field Iraq has been pumping oil at record-high rates since the start of the year, with daily output reaching 4.31 million barrels last month, most of which was exported. Yet the figure is lower than the 4.51 million barrels produced in January, and it is likely to fall further as the government wants oil companies operating in the country to reduce spending. Meanwhile demand is growing , especially in emerging markets. Iraq, which is the second-biggest producer in OPEC, works with international oil companies under agreements that require the companies to coordinate their spending plans every year with the government. The reason is that they are not just extracting oil, they are also helping to develop the country’s production and transportation infrastructure in order to expand production. In exchange for this work, the government pays them in crude. Or so it was. Related: Who Will Benefit From […]