The Iraqi Oil Minister, Ihsan Abdul-Jabbar, said that the Organization of the Petroleum Exporting Countries and its allies, OPEC Plus, oppose oil prices exceeding the “acceptable” level and are studying ways to achieve balance in the market.
Speaking to reporters in Baghdad on Wednesday, the Iraqi minister said that between 75 and 85 dollars is an “acceptable” price range for a barrel of crude oil in the long term.
Minister Abdul-Jabbar expected that crude oil prices may reach $100 per barrel in the first or second quarter of next year, with global stocks dropping to their lowest level.
He said that OPEC Plus “at the same time opposes the increase in global oil stocks, because it may lead to the collapse of oil markets.”
He pointed out that the Iraqi government’s budget for 2022 should be based on an oil price ranging between 55 and 60 dollars, adding that he expected exports to average 3.4 million barrels per day during the month of October, including from the Kurdistan region in northern Iraq.
During the past days, oil rose to its highest level in years, reaching the threshold of $ 86 a barrel, despite its slight decline later, to settle on Wednesday at $ 84.21, with Brent crude.
The decline in oil prices, on Wednesday, comes after the Chinese government intensified its efforts to tame record coal prices, and to ensure that coal mines are operating at full capacity as it moves to ease the energy shortage.