Iraq: OPEC agreement to prevent the collapse of oil prices to below $ 40

Iraq: OPEC agreement to prevent the collapse of oil prices to below $ 40



2018/12/24 7:50

{Special: Euphrates News} The Ministry of Oil, the importance of the agreement of the Organization of Petroleum Exporting Countries (OPEC) to reduce production and save oil prices from the collapse.

Current prices are $ 54 a barrel in the Brent global benchmark.

"If Iraq did not agree with OPEC on a certain reduction rate, there would be a collapse in oil prices to below current prices," ministry spokesman Asem Jihad told AFP.

He added that "Iraq in the latest agreement of OPEC cut its share of 220 thousand barrels per day in the first agreement to 140 thousand barrels per day," expressing regret "to criticize some of the oil policy of not possessing sufficient knowledge in the process of agreement within OPEC," stressing that "the Ministry of Oil is looking for an interest Iraq in the first instance. "

"If the OPEC countries did not reach a reduction in prices at the last meeting, prices would fall below $ 40 a barrel, and Iraq would be affected," he said. "What is the point of Iraq exporting large quantities of oil at low prices?"

"The agreement is a temporary rather than a long-term measure, which is for six months during which the oil market will be followed, and then there will be another meeting this period to evaluate the agreement and the extent of its service to the producers' benefit," he said. And the maintenance of the stability of prices and the importance of moving it or take other measures and these are all steps to stop the deterioration of prices. "

He continued Jihad, "The Ministry of Oil is the representative of Iraq in OPEC and is looking for his interest and other dissidents and not bidding in that is keen on everyone to take the necessary steps that protect the interests of Iraq, which is part of the international system, which can not be outside and resolutions are usually the solidarity In the convergence of views. "

The OPEC member states agreed on the seventh of this month to reduce production by more than one million barrels per day in an attempt to boost prices.

The deal is due to start in January and for six months.

The plan, which includes production cuts of 1.2 million bpd, came in response to a sharp fall in world oil prices by about 30 percent since October.

Iraq's share of production cuts is 140,000 bpd.

Oil Minister Thamir al-Ghadhban said on Sunday that Iraq wanted to extend the cut-off agreement between OPEC and independent producers in April.

Al-Ghadhban said he agreed with Saudi Energy Minister Khalid al-Falih's expectations on the possibility of renewing the agreement, adding that Iraq would monitor the course of oil prices and its development over time.


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