Iraqi Oil Minister Hayan Abdul-Ghani said: “His country does not expect the OPEC + alliance to agree to a new reduction in oil production during its meeting next month,” in the first indication from an OPEC minister to the possible decision during the meeting in light of the decline in oil prices.
Abdul-Ghani indicated, in his first interview with a foreign media outlet since he assumed the position last year, that “the next meeting, which will be held on the third and fourth of June, will not have any additional reduction, and for Iraq we cannot reduce.”
The OPEC+ alliance, which includes the Organization of the Petroleum Exporting Countries (OPEC), and other allies including Russia, agreed to cut production in late 2022 to support the market as the economic outlook worsened, affecting prices.
In a surprising move in early April, Saudi Arabia and other members of the “OPEC +” coalition announced a new cut in oil production by about 1.2 million barrels per day.
This helped oil prices to rise sharply, but these gains were erased by fears of a global economic slowdown.
Brent crude futures reached $75.65 a barrel, amid expectations that oil will end the week unchanged after a three-week decline.
Market stability
OPEC + member states are scheduled to meet in Vienna on June 4 to determine their future steps.
Abdul-Ghani said, “The second reduction was voluntary and with the agreement of the parties that contributed to this reduction, and it helped us very much in stabilizing the market and raising prices.”
And the cause of the production cut in April hurt the bears of oil prices. And the Saudi Energy Minister, Prince Abdulaziz bin Salman, had warned traders in 2020 against excessive betting on oil prices, and promised speculators that they would be severely affected.
Resume pumping oil from Kurdistan
During a visit to an oil field in Basra, Abdul-Ghani said: “Iraq has not received a response from the Turkish state energy company Botaş to its request to resume the flow of oil exports through a pipeline from the semi-autonomous Kurdistan region in northern Iraq to the Turkish port of Ceyhan.”
He explained, “If the flows resume tomorrow, Saturday, as requested by the ministry, the country will pump 500,000 barrels per day.” (Reuters)
