Left Menu
Development News Edition

OPEC+ to discuss deeper oil cuts on Thursday - Iraq minister

Reuters | Vienna | Updated: 11-09-2019 15:53 IST | Created: 11-09-2019 15:50 IST
OPEC+ to discuss deeper oil cuts on Thursday - Iraq minister
Image Credit: Flickr

OPEC and its allies will discuss whether there is a need for deeper cuts in oil production when they hold a ministerial meeting on Thursday, Iraq's oil minister said.

The Organization of the Petroleum Exporting Countries and allied producers led by Russia, a grouping known as OPEC+, agreed last year to cut oil supply by 1.2 million barrels per day (bpd) to support prices. The cuts came into effect on Jan. 1. Iraqi Oil Minister Thamer Ghadhban said that when OPEC and its allies met in June "there was this common understanding that perhaps six months since January are not enough (time) to assess the cut that we have introduced and we need two more months."

"That's why this meeting is going to be held tomorrow, to see should we continue with this cut or should we introduce a deeper cut," he said on Wednesday. "It's not a unilateral decision, it is a common decision." The OPEC+ joint ministerial monitoring committee, known as JMMC, meets on Thursday in Abu Dhabi on the sidelines of an energy conference.

The Iraqi minister said that when cuts OPEC+ originally considered cuts in November "there were two alternatives of 1.6 and 1.8 million barrels per day". "But there was resistance by some members and that's why we agreed on 1.2 million barrels per day," he said.

Benchmark Brent oil prices have fallen to about $60 a barrel in recent weeks from their 2019 peaks of $75, as worries about a slowing global economy outweigh supply disruptions from sanctions-hit Iran and Venezuela. Market players fear a U.S.-Chinese trade war could push oil demand growth below 1% for the first time in years.

Russian Energy Minister Alexander Novak said he was concerned by the slowing global economy. He told reporters that slowing demand would be discussed at Thursday's meeting but said there were no concrete proposals so far to adjust output. Saudi Arabia's new energy minister, Prince Abdulaziz bin Salman, downplayed such worries this week, saying demand would pick up once the trade threat dissipated.

Ghadhban, whose country is the second-biggest oil producer in OPEC after Saudi Arabia, said he would meet the Saudi and Russian energy ministers on Wednesday. On Iraqi output, Ghadhban said Iraq's Kurdish region should respect its obligations regarding oil exports and its share in the federal budget.

The Kurdish Regional Government is supposed to give 250,000 barrels per day of oil to the federal government but is so far not complying, he said. The Iraqi minister, speaking at the World Energy Congress in Abu Dhabi, said Iraq would continue importing gas from Iran and that there was little likelihood of reopening an oil export pipeline through Saudi Arabia.

Ghadhban said Iraq aimed to explore for gas in its western desert, saying it had "huge potential". He said Baghdad signed a contract with a Russian firm for a gas exploration block.

Also Read: Gunmen kill 4 Iraqi soldiers at checkpoint in Anbar province


TRENDING

OPINION / BLOG / INTERVIEW

Post-COVID-19 Nigeria needs a robust Health Management Information System to handle high disease burden

Nigeria is among a few countries that conceptualised a health management information system HMIS in the early 90s but implementation has been a challenge till date. Besides COVID-19, the country has a huge burden of communicable and non-com...

Morocco COVID-19 response: A fragile health system and the deteriorating situation

Learning from its European neighbors, Morocco imposed drastic measures from the initial stages of the COVID-19 outbreak to try to contain its spread. The strategy worked for a few months but the cases have surged after mid-June. In this sit...

COVID-19: Argentina’s health system inefficiencies exaggerate flaws of health information system

You can recover from a drop in the GDP, but you cant recover from death, was the straightforward mindset of Argentinas President Alberto Fernndez and defined the countrys response to COVID-19. The South American nation imposed a strict...

Rwanda’s COVID-19 response commendable but health information system needs improvement

Rwanda is consistently working to improve its health information system from many years. However, it is primarily dependent on the collection and reporting of health data on a monthly basis. Besides, evaluation studies on Rwandas HIS publis...

Videos

Latest News

Reuters Sports News Summary

Following is a summary of current sports news briefs. Halep sees off Muguruza to reach Italian Open finalTop seed Simona Halep overcame Spaniard Garbine Muguruza 6-3 4-6 6-4 on Sunday to reach the Italian Open final and stay on course for h...

Reuters World News Summary

Following is a summary of current world news briefs. UK at critical point in COVID pandemic, top medical adviser saysBritain is at a critical point in the COVID-19 pandemic and faces a very challenging winter, one of the governments top med...

Giants break out in a big way, finally, against A's

Left-hander Tyler Anderson rebounded from an early ejection in his last start to pitch into the sixth inning and the visiting San Francisco Giants vented five games worth of frustration on the Oakland Athletics on Sunday afternoon, whipping...

Reuters US Domestic News Summary

Following is a summary of current US domestic news briefs. Supreme Court fight after Ginsburgs death energizes women voters on both sidesWaiting for President Donald Trump to speak at a campaign rally in North Carolina on Saturday, Paulette...

Give Feedback