The Iraqi Ministry of Oil on Saturday reconfirmed its full commitment to the Organisation of Petroleum Exporting Countries (OPEC) crude oil production cuts, saying that all member states should stand unified to revive the oil market.
“Iraq reconfirms its full adherence to the agreement out of a firm belief that all member states of the Organisation of Petroleum Exporting Countries (OPEC) and other oil producers should yield to a unified stance in order to revive the oil market, through finding effective solutions to restore its stability and balance,” Oil Ministry Spokesman Assem Jihad said.
“Iraq believes in working with a spirit of solidarity with other oil-producing countries in order to restore stability and balance to global oil markets,” he added.
Jihad further expressed that Iraq never sought to violate the OPEC+ agreement since it wants to restore stability to the oil market.
“Iraq was and remains at the forefront of supporters of all agreements that restore stability and balance to the oil market and support oil prices. The sacrifices made by the Iraqi state during the previous or current period in this regard must not be ignored, but should rather be taken into consideration by everyone, as Iraq never sought to violate these agreements or take a unilateral stance,” he expressed.
The statement by Jihad also indicated that: “Iraq managed to positively comply with the accord during the month of May despite the difficult economic and financial conditions facing the country, in addition to technical and financial challenges as well as professional commitments with international companies present in Iraq to develop oil fields and the required time and flexibility to negotiate with them.”
It stressed that the new arrangements coincided with the formation of the new government last month, and postponing talks with the Kurdistan region on stalled issues between Iraqi and Kurdish parties.
This prompted the region to lag in making a 23% cut, as stipulated by a reduction agreement corresponding to the month of May signed with the Iraqi authorities.
Talking about oil price rises, Jihad said: “The indicators of the production cut agreement for the past month were positive and relatively affecting oil prices despite the ongoing coronavirus crisis. The agreement contributed to raising crude prices to above $40 per barrel, after recording a fall to $20 per barrel; in addition to partially absorbing part of the oil surplus in international markets. ”