Jihad: The gradual increase in production contributes to reducing the budget deficit

Baghdad - INA - Nassar Al-Hajj 

The Ministry of Oil explained, today, Friday, the mechanism for dividing the gradual increase in production that was agreed upon in “OPEC +”, while confirming that this increase will contribute to reducing the deficit in the country’s financial budget.

A spokesman for the Ministry of Oil, Assem Jihad, told the Iraqi News Agency (INA), that "one of the most important priorities of the OPEC + member states is to maintain the stability of oil markets and control the required balance between supply and demand for crude oil, and work to address the oil surplus here and there.".

Jihad added, "The gradual increase in production, which is estimated at (400) thousand barrels per day, which was agreed upon by the producing countries in "OPEC +" as of next October, will be divided according to the planned program to the member states in certain proportions and according to their oil production." .

He stressed, "It is a step towards careful handling of the requirements of the oil market in light of the challenges that confuse the movement and stability of the oil market, the most prominent of which are the new restrictions imposed by countries on their citizens after the spread of the new strain of the Corona virus, which affected the volume and quantities of consumption and decreased demand." .

He pointed out that "Iraq worked with the member states of "OPEC +" to adopt a realistic and studied deal with the needs of the oil market and absorb the oil surplus that surfaced after the repercussions of the spread of Covid 19, and here the importance of collective work on the stability of the oil market emerged," stressing that " This has a positive impact on oil prices.".

He noted that "the stability of prices at $70, despite the great challenges and the economic stagnation of many countries' economies, is a good indicator for the OPEC + member countries.".

Jihad also indicated, "The stability of financial revenues for Iraq between 65 and 70 dollars during the past months is a good realistic indicator in light of the challenges facing the economies of countries and the (fragile) reality of the oil market," noting that "Iraq aspires to achieve higher revenues through commitment to the increases. The gradual agreement that was agreed upon in "OPEC +", which contributes to reducing the proportion of the budget deficit.".