Creating new perspectives since 2009

Iraq may lose $50bn over OPEC+ deal, warns ex-minister

September 16, 2020 at 9:36 am

OPEC building [Zamoto Media/Facebook]

Iraq’s commitment to a recent agreement by the Russian-led OPEC+ group will deprive the country of 750,000 barrels of oil per day (bpd), the former Iraqi oil minister warned yesterday.

“OPEC+ deal would incur $50 billion in losses over the next two years,” Ibrahim Bahr Al-Ulloum told Russia Today (RT).

In an interview where he discussed the deal’s potential negative economic impact, Al-Ulloum said that Iraq must “review the OPEC+ agreement,” warning that Baghdad could not “bear the burden of other countries’ interests”.

The ex-minister was recently reported to have filed a lawsuit in Iraq to annul the decision of the country’s former government, which had approved the deal to reduce oil output last year.

READ: Iraq denies it’s not committed to OPEC+ reduced production pact

Member states of the Organisation of the Petroleum Exporting Countries (OPEC) and other global oil producers including Russia, who are collectively known as OPEC+, agreed to reduce oil output last year in an effort to stabilise global prices. The onset of the coronavirus pandemic has, however, decimated demand for the commodity and forced producers to reduce output and recalculate their budgets.