Can Iraq disengage from OPEC and export oil with its full export capabilities?

Baghdad Today - Baghdad

Iraqi oil expert Hamza Al-Jawahiri commented today, Wednesday, on the possibility of Iraq moving Iraq towards disengaging from OPEC and exporting oil to its full export potential.

Al-Jawahiri told "Baghdad Today", "It is not in the interest of Iraq, to ​​disengage from its association with OPEC and to export its oil independently of it, with the aim of this organization to stabilize global oil prices. If Iraq leaves, there are other countries that will go out with it."

He stated that "Iraq's taking such a step will seriously harm its economy, in the short and long term, and for this Iraq will not make or think of such a step," stressing that "the moment Iraq leaves OPEC, the global oil price will drop more than 10 dollars." And Iraq will be the biggest losers. "

The director of the SOMO Oil Marketing Company, Alaa Al-Yasiri, confirmed, Monday, (October 19, 2020) that Iraq has not asked OPEC to exempt it from the decision to reduce the production and export of crude oil, explaining that not controlling global storage will lead to severe damage to the economies of Exporting countries.

Al-Yasiri said in a statement to the official news agency, followed by (Baghdad Today), that "Iraq did not ask to be exempt from the issue of reducing oil exports," noting that, "Iraq's commitment to OPEC decisions is a voluntary and moral commitment with the aim of creating a balance between supply and demand and controlling market prices. Oil world.

He added that "the lack of control over the global oil stockpile of oil leads to a decrease in prices, which causes great harm to the crude-exporting countries," explaining that "the order to reduce production rates for OPEC countries was discussed before the approval of Iraq and there are countries that agreed to the agreement out of benefit to be able to sell the barrel." Priced at $ 40.

Al-Yasiri added that "in the event that Iraq requests exemption from the decision to reduce production, this means a breach in the studies prepared in order to create a balance in the global oil market and not achieve the desired goal in the stability of the barrel price, which requires compensation for the shortfall from other countries, and this cannot happen." Indicating that "the organization discussed the reduction issue with the participating countries to reach the equilibrium stage, and divided the reduction rates among those countries."

The SOMO director pointed out that "oil prices decreased during the fourth month and reached 9-11 dollars per barrel due to the Corona pandemic, which caused great harm to exporters, which required the intervention of OPEC and countries outside it to agree to reduce production in order to raise prices and control the global market," stressing that " Iraq is with the agreement and the first stages have been crossed, which is the period of highest commitment and the reduction was by 23% in the past months, and now the percentage is lower .. the fact that prices have begun to recover and the price has become satisfactory to all exporting countries.

He pointed out that "the region did not hand over the percentage of oil equivalent to (250 thousand) barrels per day to the Oil Marketing Company from the crude it exports," noting that "there are high-level discussions between Baghdad and Erbil and SOMO participated in some of them where there was an initial agreement that the region is ready. To hand over this percentage, this is subject to other agreements with the Ministry of Finance.

https://iraqakhbar.com/2716111