The Minister of oil of Iraq: the media reports about the increase in OPEC quotas for oil production – not true

The Minister of oil of Iraq: the media reports about the increase in OPEC quotas for oil production – not true

VIENNA, 4 December. Media reports about the increase of the OPEC quota on oil production to 31.5 million barrels/day is not true. The OPEC has kept quotas at undefined level, they are about 30-31 million barrels/day.

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© Viktor Drachev/TASS

Novak: OPEC decided to bring his quota to the real production

This was said at the press conference, the oil Minister of Iraq Adel Abdel Mahdi.

“We can’t call a certain number. But OPEC came to a joint decision – ceiling (quotas) is not defined. We can say that this is about 30-31 million barrels per day,” said Abdel Mahdi.

The Minister noted that OPEC had decided on a quota because of the position of countries outside the cartel, who are engaged in oil production.

“Why have we taken this decision? Russians, Americans, Africans, Chinese, Indians, they all produce oil but is not OPEC. Us same – to reduce production,” said he, answering the question about the reasons for the decision of the OPEC quota.

Why dropped oil prices

OPEC. Help

September 14, 1960, five countries (Saudi Arabia, Venezuela, Iran, Iraq and Kuwait) agreed in Baghdad on the establishment of the Organization of countries-exporters of oil.

Currently, OPEC consists of 12 States: in addition to the five founders, Qatar, Libya, United Arab Emirates, Nigeria, Algeria, Angola and Ecuador (in 1992 left the organization because of disagreements on distribution of quotas on oil production, in November 2007 restored the membership). In the meetings of OPEC largest oil producing countries (Russia, Norway, Mexico, Azerbaijan, etc.) can participate as observers.

In January 1961 Charter was ratified by OPEC, according to which the main objectives of the organization become coordination of policies of member States in the field of oil production and targets – ensure regular oil supplies and the stabilization of the situation on the oil markets. In 1962, OPEC was registered at the UN as an intergovernmental organization.

The Supreme body of the OPEC conference convened, as a rule, in Vienna at least twice a year. At the conference the countries represented by the Ministers of the oil industry. Decisions are taken by consensus.

Mahdi said that oil prices fell due to the fact that a “ceiling” on production only OPEC, it should be available to all countries in the world.

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OPEC decided on the production quotas because of the position of countries that are not members of the organization

“Why the ceiling is only at OPEC? It is not Russia, America, anybody,” he said.

According to the Minister, for the stabilisation of oil prices, all countries should set limits on production.

Iraq will not change the contracts to international oil companies next year, said Mahdi.

“This year’s changes to the international oil companies will not” – he said.