The Minister of oil of Iraq announced the agreement of OPEC countries to reduce the level of production


Moscow. 30 Nov. OPEC States agree to reduce oil production in Vienna on Wednesday, told reporters the Minister of oil of Iraq Jabar Ali al-Laibi.

As informs Agency Bloomberg referring to the words of the Minister, the agreement is for 6 months.

Iraq is ready to cut its own oil production without disturbing their interests, but have not yet determined the extent of such reduction. In October, Iraq produced an average of 4,56 million barrels of oil a day, according to OPEC data from published third party sources.

According to al-Lahibi, the reduction of oil production will mean higher prices. Iraq is counting on rising prices to $55 per barrel or more after reduction.

According to the Minister of energy, industry and mineral resources of Saudi Arabia Khalid al-falikha, OPEC is discussing production cuts to 32.5 million b/d excluding Libya and Nigeria.

In addition, the cartel expects that non-OPEC countries will participate in the agreement on production cuts. They are expected to reduce production by 600 thousand b/d.

The same applies to Russia. Khalid al-falih said that Kartel does not suit the intention of the Russian Federation to freeze production at the current level.

It was expected that at the meeting of member countries of OPEC execute the agreement on the reduction of production achieved in September in Algeria, and will also set country quotas. In Algeria, the Ministers of the cartel agreed to cut oil production to 32.5-33 million barrels per day with a record of 33.6 million barrels per day in September. It was assumed that Nigeria, Libya and Iran will be no exception and will be able to get the “maximum sound levels”.

Iran has been offered special terms on which his quota when OPEC agreements on production cuts was to reach 3.9 million barrels per day. Iran insists on the quota of 4 million barrels per day, which corresponds to the pre-sanctions level of production.

Iraq also demanded exceptions when production cuts, arguing that the ongoing fight against terrorist groups. However, last week the authorities announced that they are ready to take some of the load on the decline.

Tuesday sources familiar with the position of Saudi Arabia, told Bloomberg that the Kingdom is ready to make concessions only for Nigeria and Libya and may refuse agreement to limit oil production, if we fail to achieve the participation of all other members of the cartel, including Iran and Iraq. At the same time, Saudi Arabia will not insist on the same volume reduction of oil production for these two countries, as well as for other members of the cartel.

In turn, Iran, according to foreign media, suggested that Saudi Arabia cut production by 1 million barrels per day from the current 10.5 million barrels per day. Saudi Arabia has declared its readiness to cut production by 500 thousand barrels per day.

The date of the meeting of oil-producing countries outside OPEC with the countries of the cartel is not yet defined and depends on the internal decision of OPEC to reduce production.

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