Coinciding with the price war … Iraq plans to increase its oil production

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Iraq, the second largest oil producer in OPEC, plans to increase production in April, in oil markets already saturated by the significant decline in demand with the taking of several countries to combat the emerging corona virus, as well as the fierce competition between Saudi Arabia and Russia.

And Bloomberg website quoted an informed source as saying that Iraq plans to increase production by about 200 thousand barrels per day to reach 4.8 million barrels as an average production.

Thus, Iraq will join the Kingdom of Saudi Arabia, Russia and other countries, in adding more oil to the market already flooded as a result of the price war between Riyadh and Moscow.

The Iraqi source, who requested not to be identified because the information he provides is not public, said that Baghdad will ship 3.6 million barrels per day in April using the maximum export capacity of the pipelines, compared to the average exports during the month of March amounted to 3.4 million barrels per day.

He added that Iraq believes that there are no restrictions on its oil shipments for the month of April, but it may face problems if the epidemic continues and if the customer tanks are full.

The Iraqi Oil Ministry did not immediately respond to requests for comment.

The Organization of the Petroleum Exporting Countries (OPEC) failed earlier this month to persuade Russia to join the cuts, which led to a collapse in crude prices.

The relative shares of Iraqi sales to Asia, Europe and the United States were not affected by the spread of the Corona virus, and Asia remains the largest regional market for Iraq, while China is the largest buyer of Iraqi oil, importing between 800 thousand to 900 thousand barrels per day as shown in March exports.

The source said that some refineries in China began to increase production after life returned to normal slowly and slowly in some cities there.

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