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Minister: Iraq oil industries in a 'critical condition' due to covid

Oil tanksers seen at the Al-Basra Oil Terminal in Iraq [Samuel W. Shavers/Wikipedia]
Oil tankers seen at the Al-Basra Oil Terminal in Iraq, 16 May 2017 [Samuel W. Shavers/Wikipedia]

Iraqi Oil Minister Ihsan Abdul-Jabbar said yesterday that the repercussions of the coronavirus pandemic have put the oil industries in a critical situation, adding that he expects oil prices to rise above $50 early next year, Anadolu reported.

Speaking in the opening session of the oil and gas conference in the capital, Baghdad, the Iraqi minister said the OPEC+ agreements to reduce oil production will contribute to strengthening prices to exceed $50 in early 2021.

"Prices are improving, but they are still sensitive to fluctuations caused by the repercussions of coronavirus," he added.

The Iraqi minister emphasised his country's commitment to the OPEC+ agreement, saying it serves the Iraqi interests, adding that the oil ministry is moving towards expanding gas investments and opening positive discussions with international companies to invest in gas according to modern methods.

He also pointed out that Iraq's budget for 2021 is based on a crude price of $42 a barrel.

Sources: OPEC+ mulls extending oil cuts for 3-4 months

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CoronavirusInternational OrganisationsIraqMiddle EastNewsOPEC
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