Iraq announced commitment to OPEC + deal
US, WASHINGTON (ORDO NEWS) — Iraq is committed to the OPEC + agreement and despite financial and technical problems has already reached a “good share” of fulfilling its obligations, is in contact with OPEC Secretary General and ministers of the countries of the alliance, the representative of the country’s oil ministry Asem Jihad said.
Oil prices began to decline on Wednesday amid doubts that the June meeting of OPEC + will be held. According to Bloomberg, Saudi Arabia and Russia have warned other alliance members that negotiations scheduled for early June to extend record cuts in production may not take place if a number of countries, including Iraq and Nigeria, do not make firm promises to adhere to restrictions on their supplies.
“Iraq reaffirms that it fully adheres to the OPEC + oil production agreement and believes in the work of oil producers as a team to achieve the goal of stabilizing the oil market. Iraq is in compliance with the agreement, despite the financial and economic conditions that it is facing now.” – said Jihad.
According to him, Iraq has achieved a “good share” of fulfilling the terms of the transaction despite “financial and technical problems, as well as difficulties associated with concluding contracts with international contractors.” Jihad noted that autonomous Iraqi Kurdistan will reduce production by 23%.
The official said that Iraq continues to contact the Secretary General of OPEC and the ministers of oil and energy of member countries to discuss the situation on the market.
In his opinion, the indicators for the decline in oil production in May were good and in their degree influenced the price of black gold.
“We believe that it takes more time for the reduction of production to affect the oil markets and the commitment of the producers to the agreement will contribute to the achievement of the goal,” said Jihad.
According to him, the main factor influencing oil markets remains the coronavirus pandemic. “However, the decision of many countries to remove restrictions on movement will contribute to the resumption of activity in the markets,” the official said.
Jihad said that at the next OPEC meeting it is planned to discuss the reports of the organization’s research center and the effect of reducing oil production on the markets.
He noted that Baghdad supports all agreements that contribute to the stabilization of oil prices.
OPEC + agreed on April 12 to reduce oil production by 9.7 million barrels per day in May-June, 7.7 million in the second half of the year and 5.8 million further until the end of April 2022. The base of reference was taken in October 2018, but for the Russian Federation and Saudi Arabia, 11 million barrels per day were taken, from which, by analogy with all, there is a decrease of 23%, 18% and 14%, respectively. The next OPEC + meeting was scheduled for June 9-10, but may take place earlier – June 4.
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