Iraqi optimism about the rise in oil prices and a confirmation of commitment to OPEC Plus decisions

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Iraqi Oil Minister Ihsan Abdul-Jabbar expected oil prices to reach about $ 60 in the second quarter of this year. He said that he had asked – in previous meetings of members of the Organization of Petroleum Exporting Countries (OPEC) – to allow Baghdad to postpone compensation for excess production in the past, and take into account its financial crisis.

Abdul-Jabbar attributed The main reason – the low level of compliance by Iraq, which amounted to 79% of the reductions promised in the framework of the “OPEC +” agreement – to Non-commitment of “Iraqi Kurdistan” to its share of the 20% production cut.

He stated that this region did not comply with a preliminary agreement with the central government to reduce its production by 20%, by approximately 80 thousand barrels per day, adding that it continued production at 430 thousand per day.

The minister affirmed that Iraq will remain committed to OPEC’s decisions and compensate for its extra production, adding that he has no intention of negotiating with members of “OPEC +” in the future regarding its share of oil production or compensation for the excess production.

Abdul-Jabbar also said that Saudi Arabia’s voluntary production cut – of 1 million barrels per day – helped prevent the market from crashing.

OPEC + reduced supply by 9.7 million barrels per day last year, but pumped an additional 500,000 barrels per day in January, under a plan to gradually reduce the cuts. Most producers are keeping production unchanged in February, while Riyadh cuts it by an additional million barrels per day, the same month and next March.

At the end of the week’s trading, the price of Brent crude fell $ 1.32, equivalent to 2.3%, to be settled at $ 55.10 a barrel, and the US West Texas Intermediate crude was settled down $ 1.21 a barrel, equivalent to 2.3% to $ 52.36.

Abdul-Jabbar revealed the imminent signing of a contract with an international company to invest in natural gas in the Akkas field in Anbar (Reuters)

Gas investment
During a TV interview, Abdul-Jabbar revealed the imminent signing of a contract with a large international company to invest natural gas in the Akkas field in Anbar Governorate, in the west of the country.

The oil minister added, “Before the first of next June, a contract to invest the Akkas gas field will be signed,” noting that there is “significant” government support for the development of the Akkas field “because it represents a great national wealth.”

Iraq is currently in negotiations with international companies to enter into partnerships to develop the refining, gas and petrochemical sector, especially in the governorates of Basra, Nasiriyah and Maysan (south), with the aim of optimal investment of gas and stopping the burning of gas by 2024.







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