Iraq: The instability of oil markets will confuse the economies of producing and consuming countries
Shafaq News / The Iraqi Ministry of Oil revealed, on Wednesday, its commitment to the decisions of the (OPEC Plus) system regarding oil prices, and while it indicated that the Iraqi decision is consistent with the collective decisions of the organization to achieve balance and address crises, it confirmed that the instability of oil markets will confuse the economies of producing and consuming countries .
A source in the Ministry of Oil told Shafaq News that "the Organization of Petroleum Exporting Countries (OPEC) has developed a plan since it was exposed to the economic crisis and the Covid-19 crisis, and thus succeeded in raising oil prices from $20 to the limits of $100 per barrel," noting, "But the Ukrainian-Russian crisis It also cast a shadow on the oil market, which affected the rise in prices and negatively affected the instability of prices."
The source, who asked not to be named, added that "the oil market is a fragile market affected by political tensions, wars, health conditions and economic crises, and leads either to a rise or a fall in prices," noting that "(OPEC Plus), after years, it found that it has to show solidarity with each other. In order to reach a collective decision aimed at achieving stability in the oil market, because it is in the interest of all countries to achieve stability and stability, which will reflect positively not only on the producing countries, but also on the consuming countries."
The source stressed that "Iraq is committed to the OPEC Plus agreement, and therefore any decision issued by the organization is a respectable decision, and the decisions that are issued are collective decisions whose goal is to achieve the required balance and stability in the oil market and to address crises logically," stressing that "instability will confuse the economies of producing and consuming countries." ".
Prices reached over the past week after traders cited media reports of an Iraqi minister claiming that the country was ready to increase production if requested by OPEC+.
The Iraqi Sumo Company had announced on March 9 that the level of oil exports supplied to the global market (Supply) is commensurate with the level of consumption and global demand (Demand) and that the programmed increases from OPEC + are sufficient to address any shortage in supplies.
She stated that Iraq possesses an additional production and export capacity estimated at 6%, but it needs some investments to be able to provide it to the market.
And since April 2021, the “OPEC +” alliance has restricted its production to control oil prices, after these prices witnessed a significant decline during the year 2020 after the spread of Corona, and it is monthly increasing the production of its members with its allies from outside by 400 thousand barrels per month distributed according to the production capacity of each Country.
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