Why was Iraq's "voluntary" reduction the largest in OPEC+?[You must be registered and logged in to see this link.] |Today[You must be registered and logged in to see this image.]
Baghdad today - Baghdad
Today, Friday (December 8, 2023), economic expert Nabil Al-Marsoumi explained the reason for Iraq’s approval of the largest reduction within the OPEC+ organization, while noting that this reduction will have a negative impact on the volume of oil exports.
Al-Marsoumi said in a statement received by “Baghdad Today” that “the total cuts approved by the OPEC+ alliance were 2.2 million barrels per day, and that 1.3 million barrels per day was in fact an extension of previous cuts by Saudi Arabia and Russia.”
He pointed out that "the new reduction did not exceed 900 thousand barrels per day," noting that "the voluntary reduction agreed upon by Iraq was the largest (210) thousand barrels, then Russia 200 thousand barrels per day, then the rest of the countries with lower numbers."
He pointed out that "this reduction will have a negative impact on Iraq's new production share, which has become only 4 million barrels, compared to 9 million barrels per day for Saudi Arabia and Russia."
The economist stressed that "this reduction will negatively affect the volume of oil exports and therefore the volume of oil revenues, especially in light of the significant decline in global oil prices."
Saudi Arabia, Kuwait, Algeria, the UAE, Iraq, and the Sultanate of Oman announced a voluntary reduction in oil production following a meeting of the OPEC Plus alliance.
A source at the Ministry of Energy said, “The Kingdom will extend its voluntary production cut by one million barrels per day until the end of next March.”
He added, "This decision came in coordination with some countries participating in the OPEC Plus alliance agreement, which held a meeting last Thursday."
He stated that this reduction is in addition to the voluntary reduction of 500,000 barrels per day, which the Kingdom previously announced last April, and which extends until the end of December 2024.
The source confirmed that this additional voluntary reduction comes to strengthen the precautionary efforts made by the OPEC Plus countries with the aim of supporting the stability and balance of oil markets.
SPA reported that Saudi Arabia's oil production will reach about 9 million barrels per day until the end of March 2024, and added, "In support of market stability, these additional reduction amounts will be restored gradually according to market conditions."