Abadi adviser: Iraq bet on OPEC prices to avoid large investments

Abadi adviser: Iraq bet on OPEC prices to avoid large investments

Posted by: admin2 in the economy of November 24, 2016

BAGHDAD / SNG

Economic Adviser to the Prime Minister Haider al-Abadi, said he was "difficult to ensure high global oil prices cut production according to OPEC's existing plan."

He said the appearance of Mohammed Saleh said that "Iraq wants better prices the more we increase production capacities we need a large investment costs and the yield is then semi-glory."

And between, said that "betting on the price of all the countries of OPEC members, not just Iraq are betting correctly to avoid large investments Vantage larger quantities means falling oil product value and enter in a vicious circle, that is, there is no added value and the contrast is difficult to guarantee high prices compared to reduce production."

Saleh pointed an economist that "Iraq's current produce it with the current Sadarth we consider to be reasonable and if the price improvement while reducing production and export with global oil demand growth and investments to improve the price certainly helps Iraq to confront challenges and expenses."

He pointed out that "Iraq is not a welfare issue of cutting production point although we've come to the limits of productivity, including allow him cartel 35 years ago, but at the same time we have a problem in domestic consumption and energy production for the purposes of operating refineries, mostly for consumption and not for export of petroleum products, where we continue to import white crudes by as up to 45% of domestic needs which is costing Iraq billions of dollars annually. "

"The potential of Iraq's production reached 4.5 million barrels as production and sections of it goes for domestic consumption and the difference in the export is 3.8 million barrels per day, also painted so in the budget of 2017 and these are the potentials of Iraq exporter and production."

The adviser Abadi, that "Iraq is in a critical situation must be assessed first for two reasons: he was deprived of his share for 35 years, while other countries, the development of other reason there is a need to develop domestic consumption rather than export only."

However, to say "but nonetheless Iraq with the umbrella of understanding and penetrating the global understandings which does not have too many energies is a danger to others where he produced and exported within reason," adding, "If improved prices no forms to reduce production and here we talk about production from Iraq, including the Kurdistan region."

The Prime Minister Haider al-Abadi said on Wednesday that Iraq was ready to cut its oil production as part of efforts to reduce global supply and boost crude prices, OPEC plan.

Ebadi said in a press conference in Baghdad, "which Snkhosrh reducing our production Snrbha in oil revenues," stressing that "Iraq is responsible for part of this reduction," stressing, "We want to protect the rights of Iraq but our priority to raise prices of a barrel of oil."

The Abadi's remarks clearest signal yet that Baghdad will support efforts to reduce OPEC production plan when the organization meets next week in Vienna

The Minister of Oil Ali Hussein Allaibi Monday that Iraq holds new ideas and proposals for the ministerial meeting next OPEC "aimed at the events of greater convergence and consensus among members to reach an agreement guaranteeing the achievement of common goals for the producers, including the stability of the market and support oil prices to acceptable levels."

He estimated Iraq's oil production at 4.77 million barrels per day in October and says he will not reduce production again to less than 4.7 million barrels a day, said Falah al-Amiri representative of Iraq's OPEC governor and the president of state oil marketing company SOMO national] It will not happen for OPEC or Other".

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