Abdul-Mahdi calls for OPEC to cut production is expected to exceed the coup in the oil markets

by day dreamer Tue 26 Jan 2016, 11:41 pm

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Abdul-Mahdi calls for OPEC to cut production is expected to exceed the coup in the oil markets

by day dreamer Tue 26 Jan 2016, 11:41 pm

01/27/2016 (00:01 pm) -

[ltr] Abdul-Mahdi calls for OPEC to cut production is expected to exceed the coup in the oil markets [/ltr]

[rtl] [/rtl] Baghdad / Ibrahim Ibrahim, long-Presse

[ltr]Oil Ministry warned on Tuesday, which it called "coup" in the global oil market and rising "violent and sudden" If big drop in crude prices and stop investing in many regions of the world continues, with predicted economic expert end of the economic crisis experienced by the country gradually .
Adel Abdul-Mahdi said during oil strategies Forum held in Kuwait and I followed (range Press), said that "now much more flexibility with the major oil producers Saudi Arabia and Russia to cooperate to reach an agreement to reduce production to cope with the case of deterioration of the crude oil prices in world markets, which amounted to non-rates unexpected, "stressing the need to" invest this flexibility. "

Abdul-Mahdi, and predicted that "we hear solid proposals coming from all producing parties", noting that "the organization of oil producing countries, OPEC, which covers 40% of the total oil equipment in the global market has declined during the last meeting in the month of December of last year, in 2015, a Bsagvha reduce production to flood the market with more surplus production. "
Abdul-Mahdi said that "eight of the thirteen OPEC members less operational and investment costs for the production of the barrel for $ 30," stressing that "we have lived for decades with prices of $ 25 to $ 30 a barrel, but now the highest cost of production."
Abdul-Mahdi stressed that "OPEC countries suffer from economies heavily dependent on oil, while economic diversification to other States provides non-OPEC added advantage," pointing out that "the cost of oil production in countries outside OPEC is much higher than the OPEC countries, which makes each a comparative advantage for the other team. "
Abdul-Mahdi said that "our colleagues in the non-OPEC have oxygen masks breathe out under water and we do not have the masks," expressing Iraq's readiness "to participate in the production cuts if the cooperation of all Members."
For his part, Minister of Finance and Minister of Kuwait's oil agency lance Saleh said during the forum that "OPEC would be unable to reduce production to achieve balance in the market unless it cooperates other producers with this trend," asserting that "the organization may not have to do so as long as its strategy working."
It is noteworthy that world oil prices recorded a continuous decline since the second half of 2014, until it reached $ 28 per barrel, but returned to rise slightly as reported, on Tuesday, (January 2016 26), to $ 30.78 a barrel.
It is noteworthy that Iraq complain of weak financial revenues due to declining oil prices and increased expenses, which the military side came on her head, what made the government resort to austerity as one of the solutions adopted to meet the country's economic situation started.
In turn, the economist expressed optimism rising oil prices during the second half of this year, and near the end of the financial crisis faced by Iraq.
The economist said Mohammed Abdul Latif al-Ani, in an interview for the "long" that "the decline in global oil prices was the result of economic contraction cycle vexatious going through the world during the long intervals of time, and for several reasons, mostly political par excellence."
He added that "Iraq States most affected by the current economic crisis is spared for lacking a variety of financial resources for the oil money source."
He said al-Ani said "the large losses suffered by the OPEC countries since the beginning of the crisis, the decline in oil prices so far, paid to find realistic solutions to raise prices summed up by reducing the source of production, and it depends mainly on the largest oil-exporting countries, including Iraq."
He said the "Iraqi government's moves represented by the Federal Ministry of Oil to persuade some OPEC countries to reduce oil source could bear fruit soon, because the Iraq of the founders of the Organization of Petroleum Exporting Countries and the advantage of good relations with all major powers, which controls the headwaters of the energy in the world."
Ani said that "increase the production of a barrel of oil costs $ 20 to the level of financial losses caused billions of producing countries and most notably the United States and capacitive."
"The world is witnessing the emergence of new energy projects could displace oil from the first level in the order of economic markets in the foreseeable future, so to make the most of Iraq's oil to establish economic infrastructure NES include several sectors."
Oil prices rose above $ 30 a barrel on Tuesday, supported by hopes of approaching members of OPEC and independent producers to reach an agreement on the reduction of the supply glut that constitute one of the largest surpluses in decades.
Organization of Petroleum Exporting Countries and the renewal of the Petroleum competitors calls for producers to cut supply from outside supply in cooperation with the members of the organization but Russia, which is an essential party to any agreement so far refused to cooperate.
And increased global price of Brent crude was up 17 cents to $ 30.67 a barrel by 1102 GMT, recovering from losses incurred earlier. On 20 January, the first crude down to its lowest level since November 2003, at $ 27.10 a barrel.
Said David Hvton of Ba.vi.am brokerage in oil, "without an agreement on the basic factors of production refers to the low numbers, and the agreement of the price of oil up to between $ 40 and $ 60 a barrel in the market."

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