Iraq’s share of OPEC+ reduction decision will be 220 thousand bpd
Baiji oil refinery north of Baghdad, Iraq. Photo: Reuters
Baghdad (IraqiNews.com) – The State Organization for Marketing of Oil (SOMO) revealed that Iraq’s share of the OPEC+ decision to reduce crude oil production by about two million barrels per day will be 220 thousand barrels per day, according to statements of SOMO director, Alaa al-Yassiri.
“The decision OPEC+ made on Wednesday will stop the ongoing decline of oil prices and will contribute to their rise, particularly since it lost 35 percent of its value in the recent months,” Al-Yassiri explained.
Al-Yassiri elaborated that if OPEC+ did not decide to reduce production, oil prices would reach 50 USD per barrel, which means a continuous decline would take place.
Al-Yassiri indicated that the reduction will not affect Iraq’s oil exports, as they will remain in the same current quantities, and the extra quantities will be used for domestic consumption.
Earlier on Wednesday, the Joint Ministerial Monitoring Committee (JMMC), during its 45th meeting held in OPEC Secretariat in Vienna, Austria, agreed to reduce crude oil production by two million barrels per day, starting from November, in response to the decline in prices.
OPEC+ mentioned in its statement that crude oil reduction will continue throughout 2023, and the JMMC will meet every two months to follow up on the developments of the oil market.