OPEC+ decision 'did not' reduce Iraq's exports, SOMO

INA - BAGHDAD

The National Oil Marketing Company - SOMO confirmed on Saturday, that OPEC+ decision to cut production did not reduce Iraq's oil exports.

OPEC Plus’s decision to reduce production by two million barrels per day "had an important role in stabilizing global markets and the reduction included all countries at varying rates as it goes according to the amount of their production," said the deputy general manager of the company and the representative of Iraq in OPEC, Saadoun Mohsin, to Al-Iraqiya News TV, followed up by the Iraqi News Agency - INA.

He explained, "OPEC Plus produces 43 million barrels per day, and the proportion of what Iraq produces is 11% of it, and therefore it is the same percentage of reduction according to the decision to reduce production by two million barrels."

"Iraq did not reduce its exports according to this reduction, but rather reduced domestic production and invested in the rise in prices by stabilizing the export rate. It is a strategy that succeeded in achieving high financial revenues," he highlighted, adding "OPEC+ group meets every two months to assess the global market in terms of supply and demand. There are severe fluctuations due to the repercussions of Corona pandemic, the slowdown in the global economy, and the Russian-Ukrainian war, which added burdens to price stability."

He pointed out that any future decision regarding maintaining the current reduction, adding a new reduction, or increasing the quantities produced as it will take into account the market situation and aim to create balance.

There is a meeting of the OPEC+ group on December 3-4, which will study the current situation and issue balanced decisions.

Regarding expectations for oil prices next year, Mohsin said that the average price this year has reached $97 a barrel, which is a good price, as according to experts' estimates, next year's prices will be between $85-95 and maybe less than $5-7 as a minimum.