Parliamentary Energy: Iraq must be out of quota if OPEC decides to cut production further

Parliamentary Energy: Iraq must be out of quota if OPEC decides to cut production further


 Baghdad / Zahraa al-Jassim

The Organization of the Petroleum Exporting Countries (OPEC) forecast in its end-of-the-week report to increase demand for its crude in 2018 due to growing global consumption and pointed to signs that the oil market is improving, with the reduction of OPEC-led production likely to save the market from surplus supplies , While the parliamentary energy will find these expectations beneficial to Iraq as it opens the way to overcome some of the economic challenges, stresses the need for Iraq to be out of the quota if OPEC decided to reduce production further, indicating OPEC's need to maintain the ceiling of current production in order to restore the oil market to the status of medicine Aware, because that market is still affected by US oil stocks.

On the other hand, an expert on the economic issue, that any increase in Iraq's oil exports or in oil prices will lead to increase the potential of the state and the Iraqi government, which will make us launch a missile in the process of economic and social development of the country, especially since the fact that Iraq is financially incapacitated is a matter of management Internationally and internally.
The OPEC report also stressed that the world will need 32.42 million barrels per day of its oil next year, an increase of 220 thousand barrels per day than previously expected, adding that the current market in Europe and North Africa has improved and that the increase in prices of Brent crude for immediate delivery compared with subsequent supplies indicate The outlook for the Brent has stabilized amid some bullish signs in the current market, and the price differential has significantly improved for a number of basic raw materials in the Mediterranean, North Sea and West African markets.
Oil rose above $ 53 a barrel, ignoring data in the report showing another jump in OPEC production, and is likely to continue to oversupply the market next year.
A member of the parliamentary energy committee and former oil minister Ibrahim Bahr al-Ulum confirmed in an interview with Al-Mada that he still believes that the OPEC needs to maintain its current production ceiling in order to restore the oil market to normal, especially as prices are still in the markets affected by US oil stocks , And there seems to be a good work especially, and there are expectations of a further reduction in Saudi Arabia's production in the coming months, which is a correct point in this path, which remains Iraq's margin of flexibility greater economic requirements, especially as he has committed to the past period of OPEC plans and commitments were above the proportion of " 80% "This is in itself done to Iraq, so if OPEC decides to cut more production, Iraq must be outside the quota.
Production outside the organization is also increasing, but not at the pace OPEC had previously believed. The Organization had previously forecast an increase of 1.10 million barrels per day (bpd) next year, down 40,000 bpd from earlier projections, based on downward revisions in the outlook for Canada and the United States. The report said the market would see a surplus of 450,000 bpd next year if OPEC continues to pump crude at July's rates, but less than the estimated surplus in the previous month's report.
Bahr al-Ulum predicted that the price of oil in 2018 will reach between 53 and 55 dollars per barrel, which is useful for Iraq on the assumption that the supplementary budget planned to $ 44 per barrel of oil, again by saying: He stressed that any increase in prices would be beneficial to Iraq. At the same time, he predicted that any reduction in production in OPEC, especially if Saudi Arabia and Russia participated in the reduction, would also benefit oil prices and open the way for Iraq to overcome some of the economic challenges currently facing the country.
The government approved the supplementary budget on June 22, changing the price of a barrel of oil from 43 dollars to 44.4 dollars, and voted by Parliament recently after discussing the items.
OPEC has cut output by about 1.2 million bpd, while Russia and other non-OPEC producers cut their supplies by half as much as 2018. The agreement aims to dump excess stocks. In a sign that it is a success, OPEC said stocks in developed economies fell in June and fell by 87 million barrels compared with an average of five years since the cut began in January. OPEC said "
US crude inventories are likely to fall further, taking into account the record rates of US refineries, "official data showed on Wednesday, with refinery utilization at the highest level in 12 years. * High demand and production Iraqi Oil Minister Jabbar al-Allaibi , Said on Friday that Iraq is committed to the policy of «OPEC» and the government of his country is committed to cooperate with Saudi Arabia, and there is room for difference He continued at a news conference in Riyadh with the Saudi Oil Minister: «We agree and agree with the proposals of Saudi Arabia, Some differences or differences from the side And that Iraq is ready to deal with any differences radically and immediately, and this gives a signal that Iraq is fully committed to the decision of «OPEC» and does not differ with Saudi Arabia or any other country In this regard
He added that: «Iraq began a reduction in the month of January (January), and began about 75 thousand barrels. There were differences of more than 80 thousand barrels, and then began in February to reduce this gap that we have reached 90 percent of the quota to reduce the exports of the South, and these figures correspond to the direction of the government, there may be a difference between 60 - 70 thousand barrels Because of the northern region », stressing that Iraq is committed to reduce 210 thousand barrels per day and there is no room for doubt or controversy in it.
Al-Allaibi pointed out that his ministry overcame the differences by virtue of the government's share in the production of Kirkuk oil, which is equivalent to about 60 thousand barrels per day, and was directed one of the refineries in Erbil, and now after these actions at the level of 190 thousand barrels per day, To be processed.
On the other hand, the economic expert Majid al-Suri said in an interview for (the extent) that any increase in Iraq's oil exports or in oil prices will lead to increase the potential of the Iraqi state or the Iraqi government in the process of exploitation of these funds and if there is a rational management of these proceeds will have a start Missile in the process of economic and social development of the country, and this increase could cover the budget deficit and even cover other financial needs for the process of economic development, pointing at the same time: that the deficit of the Iraqi government is a matter internally and internationally, L, wanted Iraq to be unable to finance the process of socio-economic development, on the other hand, in the absence of financial and administrative corruption, there was no deficit, connected: Therefore, any funds come to Iraq even under these circumstances and exploited properly and rationally to achieve this level of fiscal deficit, and inflate the state apparatus and reach more than 4 million and a half employees, consumes more than 84% and half of oil imports, contributed to the extent Big in the financial crisis we are going through.
The decline in oil prices and the war against the organization of the terrorist advocate revealed the fragility of the Iraqi economy as a state dependent on revenues from the sale of crude oil, to cover the expenses that have increased in the past few years, putting the government in a financial predicament imposed by the impact of many austerity measures.



[You must be registered and logged in to see this link.]