Why Iraq wants to continue to cut OPEC output throughout 2018?
Iraq has joined the United Arab Emirates, Qatar and Oman in demanding that OPEC and allied producers abide by their agreement to cut oil output until the end of the year despite recent gains in prices.
"The reduction of production by the Organization of the Petroleum Exporting Countries (OPEC) and its co-producers have contributed to the stability of the oil market, and Iraq supports OPEC's decision to preserve the oil reserves," the report quoted Iraqi Oil Minister Abdul Karim Luaibi as saying at a conference in Abu Dhabi. Oil production ceiling. "
"OPEC's agreement with other suppliers in November helped curb production until the end of 2018, which briefly raised Brent crude prices above $ 70 a barrel last week."
"There are some sources here and there indicating that the market is booming now and prices are healthy so they are saying let's talk about ending the freeze, but that's a wrong rule and we do not agree with that concept," he said.
The report pointed out that the UAE does not expect a significant change in price policy due to short-term price fluctuations, according to Energy Minister Suhail Al Mazrouei, while the Qatari Energy Minister Mohammed bin Saleh said that "OPEC will reconsider the reduction of production only if the return of crude stocks to an average Historic five years ago. "
"Brent crude rose to $ 70 a barrel last Thursday before giving up its gains. The index added about 0.6 percent last Friday to end the week at $ 69.87 a barrel in London, the highest closing price since December 2014," the report said. Prices are making gains as OPEC and its allies, including Russia and Oman, are offering to trim supply to increase abundance. "
"Iraq hopes that this dynamic will continue throughout 2018 where this deal should continue," he said. "The market is now settling in one way or another, but it is not quite stable yet."
Iraq has repeatedly declared last year that it should have been exempted from oil cuts as part of rebuilding its war-torn economy. It missed its OPEC members in the estimated production for much of 2017 and did not fully comply with the cuts promised until October, when the crisis with the Kurds created production to the agreed limits within the OPEC agreement.
"I do not think that if we see the price as high as $ 69 or close to $ 70, we need to meet and panic," he said.
The cuts are seen as OPEC's view, but some members, particularly Iran, are concerned about pushing a new batch of oil shale producers in the United States. As US production fell last week, the Energy Information Administration expected output to rise above 10 million barrels per day per month Next.
Oman, the largest Arab producer outside OPEC, has joined cuts in its crude oil exports, saying it was too early to discuss the cuts before the end of the year, despite fears that oil prices may rise.
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