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Member of the Parliamentary Oil and Energy Committee, MP Ghalib Muhammad, called on Sunday to conduct negotiations with OPEC+ to reduce Iraq’s percentage of production cuts, in case it is decided to extend the reduction period again.
Muhammad said in an interview with Shafaq News agency, “Iraq is one of the countries that totally depend on oil in its general budget. Changing its prices or reducing them by even one dollar affects the country’s economy”, stressing the need for, “Iraq’s commitment to OPEC decisions because any loss that occurs will have a greater impact on it more than any other oil-producing country. ”
Muhammad added, “In case OPEC + decided at its next meeting to extend the reduction for another period, Iraq’s failure to comply will affect its economy in particular and the world in general, and will also lead to a greater loss of its financial revenues as a result of lower global oil prices, as we witnessed last April.”
“Iraq can agree with the neighboring countries of Saudi Arabia, the UAE and Kuwait, which are members of OPEC, by helping it to obtain an increase in its oil production more than what was previously specified, considering that Iraq’s economic situation is currently bad,” stressing, “the agreement would help stabilize the global oil prices”.
OPEC+ agreed in April to reduce oil prices after they fell to less than 20 and a half dollars. The agreement included reducing oil production by 9.7 million barrels/day and 300 thousand barrels per day.
The reduction decision began last May, for two months, followed by another agreement to reduce production to 8 million barrels per day until the end of 2020.
Iraq’s share of the reduction was 1.061 million barrels per day. The International Monetary Fund had indicated in its October report that Iraq had lost 50% of its oil revenues during the first half of this year.
OPEC and allies led by Russia was scheduled to raise production by two million barrels per day next January as part of a gradual easing of unprecedented supply cuts.
