Iraq confirms full compliance with crude oil production cuts

On Friday, the Iraqi Ministry of Oil reconfirmed its full commitment to the OPEC+ crude oil production cuts.

Oil Ministry Spokesman Assem Jihad announced in a press statement: “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.”

Jihad continued: “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.”

“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 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.”

Coronavirus: Oil giants’ loss exceed $20b in first quarter of 2020

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 per cent cut, as stipulated by a reduction agreement corresponding to the month of May signed with the Iraqi authorities.

The statement emphasised that the Iraqi side is constantly communicating with the organisation’s current president and secretary-general, as well as several oil and energy ministers, to discuss developments in the oil market, and to confirm Iraq’s full commitment to the agreement alongside other oil-producing countries.

Jihad commented on the rise in oil prices, explaining: “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. ”

He concluded: “We believe that the implementation of the production cut accord requires more time, patience and sacrifices, if we want to achieve a positive impact on the oil markets. On the other hand, the full commitment of oil-producing countries will contribute to achieving this goal.”

Read: Saudi Arabia urges OPEC+ to further reduce oil production to restore market balance