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Parliament oil: Iraq must negotiate with OPEC in the event of an extension to reduce production
Economy News _ Baghdad
On Sunday, a member of the Parliamentary Oil and Energy Committee, MP Ghalib Muhammad, called for negotiations with OPEC + to reduce Iraq's share of production cuts, in case the reduction was decided to be extended again.
Mohammed said in a press interview, "Iraq is one of the countries that depend on oil in its general budget entirely, and therefore any defect in changing the price of oil or reducing it by one dollar affects its economy," stressing the need for "Iraq to adhere to OPEC decisions because it is any loss." It will have a greater impact than other neighboring oil-producing countries. "
Muhammad added, "In the event that OPEC + decided at its next meeting to extend the reduction for another period, Iraq's failure to comply with that will affect its economy in particular and the world in general and also lead to a greater loss of its financial revenues as a result of lower global oil prices, as we witnessed last April." ".
Muhammad indicated that "Iraq can agree with the neighboring countries of Saudi Arabia, the Emirates and Kuwait, which are members of OPEC, by helping it to obtain an increase in its oil production more than what was previously specified for him, considering that Iraq’s economic situation is currently not good," stressing that "the agreement would It gives stability in global oil prices and the possibility of higher these prices in the future. "
OPEC + agreed in April to reduce oil prices after they fell to less than 20 dollars, and the agreement includes reducing oil production by the alliance by 9.7 million barrels per day and 300 thousand barrels per day.
The reduction decision began from the beginning of May for a two-month period, followed by another agreement to reduce production cuts to 8 million barrels per day until the end of 2020.
And implementation of a third production cut will begin, by 6 million barrels per day, which is two million barrels less compared to the previous agreement, which starts in early 2021 until April 2022.
Iraq's share of the reduction was 1.061 million barrels per day, while the reduction of Russia and Saudi Arabia amounted to 2.508 million barrels per day, and the rate of reduction of the UAE amounted to 722 thousand barrels per day.
OPEC and allies led by Russia, in the framework of what is known as OPEC +, was scheduled to raise production by two million barrels per day next January as part of a gradual easing of unprecedented supply cuts, and in light of the decline in prices, OPEC + will discuss its upcoming meeting on December 30. The first of next January, postponing the increase or even deepening the reduction.
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