Today, Tuesday, the Ministry of Oil has set the monthly pricing mechanism, while confirming that the OPEC agreement is temporary.
The ministry’s spokesman, Assem Jihad, told the official agency, followed by the “National News Center”: “The increase in the price of a barrel in global markets to more than $80 is a good indicator of an increase in additional financial revenues to the state treasury,” pointing out “the importance of prices being at the same rate for the coming months.” To be effective because the budget is calculated for a year, and therefore requires price stability according to high rates so that we can be confident that there are high revenues that supply the budget.”
He added, "Some media outlets are circulating news about Basra crude prices, and we do not know how these hypothetical prices are transferred," noting that "the price situation is through the monthly pricing meetings between the Minister of Oil and the director of SOMO and the relevant departments, where the markets are reviewed. Global and producing countries to set the monthly price.
And on the possibility of increasing Iraqi production, Jihad stressed that “Iraq played a major role in OPEC and OPEC Plus within the agreement to limit production due to the repercussions of the Corona virus and the economic stagnation and decline in oil consumption, as the producing countries took the decision to limit production,” explaining that “the challenge faces everyone.” And the producing countries, including Iraq, must abide by the OPEC agreement, which controlled the deterioration in the global oil market.”
He added, "OPEC Plus monitors the oil market, and therefore no producing country can be alone in a decision outside the agreement, which may lead to a decrease in oil prices," stressing "the commitment to this temporary agreement imposed by circumstances and challenges, which will no longer be needed whenever circumstances cease to exist."
He stated that “the OPEC agreement stressed on the producing countries the necessity of balance in the oil market in order to achieve the goals of stability, which is reflected in the interest of the producing and consuming countries,” explaining that “Iraq is committed to limiting production at rates of up to 3 million barrels, which achieve good revenues between 6 to 7 Billions of dollars, especially for the past months.
Jihad expressed his hope for "the stability of prices and the oil market in the next stage in order for revenues to be higher."
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