SOMO confirms OPEC+ decision to reduce production stabilizes global markets

Baghdad (IraqiNews.com) – The State Organization for Marketing of Oil (SOMO) confirmed on Saturday that OPEC+ decision to reduce production did not affect Iraq’s oil exports, and suggested that oil prices in the coming year would range between 85-95 USD.

Iraq’s representative in OPEC, Saadoun Mohsen, told the state news agency (INA) that OPEC+ decision to reduce production by two million barrels per day had an important role in stabilizing global markets.

Mohsen elaborated that the reduction included all producing countries at varying rates according to their production rates.

Mohsen explained that Iraq produces 11 percent of OPEC+ production which is 43 million barrels per day.

Mohsen indicated that Iraq did not reduce its exports according to OPEC+ decision, but rather reduced the domestic production and benefited from the rising prices by stabilizing the export rate, a strategy proved to be successful in achieving high financial revenues.

Mohsen clarified that OPEC+ group meets every two months to assess the global market in terms of supply and demand, and there are severe fluctuations due to the repercussions of the Corona pandemic, the slowdown of the global economy, and the Russian-Ukrainian war.

OPEC+ group will meet on December 3-4 to study the current situation and issue new decisions.