Iraq and oil states will extend production cuts

Iraqi oil minister, Jabbar Ali Al Laibi said that the last agreement between OPEC members to reduce crude oil markets’ production is an important step to achieve balance and stability in oil prices. Oil expert confirmed the anticipated meeting this month will support Iraq’s decision to extend production cuts at least to the end of the current year as it is expected that oil prices will return to $ 26 rate after they dropped by 13% in the last weeks.   Iraq confirmed its commitment to the discussions of this meeting, despite the fact it should be released from these cuts giving its circumstances between fighting terrorism, efforts to rebuild the infrastructure and its unstable position between OPEC countries.   Al Laibi said that Iraq’s decision to cut production was based on statistics and production figures which led great cuts and reduced the effectiveness of other revenues, confirming that Iraq is working to increase production’s capabilities despite all of the obstacles, while light and heavy oil exporting levels remain good and Iraq has made good progress in reducing gas flaring. According to Al Laibi, there will be a calculated future to achieve balance between offer and demand in order to create a new safe environment for global energy, and this requires the submission of revised legal and contractual frameworks, adopting effective measures with no standards to reduce costs, assigning better strategies for work, and achieving costs’ effectiveness by avoiding any extension. The Iraqi oil ministry is currently dealing with all the obstacles facing it, hoping that, all stakeholders, whether oil-producing, international oil companies, or traders will work together in this regard to achieve the mentioned balance.   Iraq started taking procedures to cut its oil national production since the beginning of 2017 in line with OPEC decision. Secretary-General of OPEC Organization, Mohammed Barkindo said that, Iraqi oil minister, Gabar Al Laibi played an important and effective role in making important decisions through his consulting regarding the production cut, praising Iraq’s commitment to its decision, its cooperation with OPEC organization, and its effort to strengthen the organization’s role in restoring balance and stability in global oil markets.   On the other hand, the Kuwaiti oil minister, Essam El Marzouq who chairs a committee overseeing compliance with production cuts said that, there is semi-unanimity to extend the cuts at least for 6 months, while Russia and Saudi Arabia, the world’s largest oil producers declared their approval to this extension to restore the balance in the market