Calls to exclude Iraq from OPEC's decision to cut oil production

Calls to exclude Iraq from OPEC's decision to cut oil production


BAGHDAD - The Journal News
said the oil and energy parliamentary member Zaher al - Abadi said that " the meeting of OPEC members is to reach decisions on the exclusion of some of the decision to cut production, including Iraq , because the reduction decisions need approval from everyone."

"It is assumed that the visit of Iraqi Oil Minister Jabbar al-Luaibi to Iran and Saudi Arabia, which are members of the OPEC is to reach a direction to those two countries to allow Iraq to export and produce oil more than the usual amount, to compensate for his losses," Abadi told the Journal News. The latest war in the country and the latest war against the organization calling for the terrorist and the depletion of the national economy, and the decision to highlight the good intentions of the members of the Organization of the Petroleum Exporting Countries to help Iraq.

He added that "there are real efforts from other countries within the" OPEC "and when the visit of the Algerian Energy Minister, the Energy Committee parliamentary meeting with him was extended and consolidated efforts and real efforts by Algeria in support of the exclusion of Iraq from the decision to reduce oil production, noting that Iraq has passed economic conditions Depleted its forces, the last military war against the duel. "

Abadi pointed out that "the efforts of the government must be intensified by the Ministry of Foreign Affairs and the Ministry of Oil and the Prime Minister so that a result can be reached except for Iraq from the decision to reduce oil production, pointing out that the budget bear a deficit estimated at more than 25 trillion dinars and depends on revenue, With revenues from certain investments or to maximize state resources from other economic sectors. "

For his part, the oil expert Hamzah al-Jawahri said that "the large production capacity does not mean the possibility of export in large quantities, and perhaps the decision to reduce production was due to the large supply in the oil market and the lack of demand, which led to the fall of world prices for the barrel of crude."

Al-Jawahri said in a statement to the «Journal News», that "Iraq is making a bigger profit despite the reduction of production because the reduction for him is limited and does not exceed" 206 thousand barrels per day, adding that the increase in the price of the barrel cover the loss of production cuts, So that we have a net profit is large, so Iraq earns a daily profit of 10 million dollars, according to the data of the State Energy Agency, which means that Iraq's net profit per year may close to four billion dollars.

"The issue of the reduction of production is temporary and is the result of the presence of quantities of oil in the hands of speculators is not controlled by the producing countries, in order to control the markets should be the two main factors only are working, namely the product, supply and consumer any demand, and if there is More than one hand, I mean here speculators, will control the movement of the market is very difficult, so the quantities that had been speculators during the period of falling prices exceeded 150 million barrels, and these quantities need a long period of up to two years to drain and even depletion Those quantities will keep the producing countries suffering Yeh production cut or frozen.

The member of the parliamentary economic committee MP Amer al-Fayez, that the decision to extend the reduction of oil production will reflect negatively on the Iraqi economy, stressing the importance of the exclusion of Iraq from this decision because it is in urgent need to raise production to compensate the financial crisis experienced by it.
Al-Fayez said in a press statement that "Iraq has gone through very poor economic conditions, down oil prices from 120 dollars to 40 dollars and the war against Dahesh. He needs large sums to rebuild the devastated cities and solve the crisis of the displaced. All of them require a large budget to cover them, That most of the oil countries did not pass through the conditions of Iraq's material and have a budget sufficient to require a reduction in production and exclude Iraq from the decision to reduce production.

"The reduction of oil production will lead to the shortage of foreign currency to Iraq, which will cause the decline of the country's foreign currency reserves and low budget, which leads to non-coverage of the country's salary needs and the return of destroyed cities and housing displaced and others."

The Organization of Petroleum Exporting Countries (OPEC) has agreed to extend oil production cuts by an additional 9 months.
"Producers will have to cut output by 1.8 million barrels per day for the duration of this period, and Russia, the largest producer outside the organization, has agreed to the extension," according to the agreement reached at the Vienna meeting of the member states.

Saudi Arabia, Kuwait, Iraq and Iran have proposed an extension of the OPEC agreement to cut production for another nine months on the sidelines of a meeting of Vienna's member states on Thursday.

Oil Minister Jabbaralibi had earlier agreed to extend the production cut by nine months.

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