• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Russia Says Europe Will Struggle To Replace Its Oil Products
  • 17 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 15 hours Reality catching up with EV forecasts
  • 9 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 3 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 8 days A Somewhat Realistic View of the Near Future for Electric Vehicles Worldwide
  • 14 days The Federal Reserve and Money...Aspects which are not widely known

Saudi Arabia And Iraq Reiterate Their Support For A Production Cut

Following a bilateral meeting on Thursday, the energy ministers of Saudi Arabia and Iraq reiterated their support for the oil production cut agreed upon last month.

At the same meeting, they emphasized the importance of sticking to the agreement until the end of 2023, Saudi Arabia’s Abdulaziz bin Salman said in a statement earlier today.

Bin Salman and his Iraqi colleague, Hayan Abdel-Ghani, also agreed that they would ensure OPEC has "the ability to take further measures, if required, to achieve balance and stability in the market."

ADVERTISEMENT

Iraq has ambitious oil production growth plans, eyeing a production capacity of 7 million bpd by 2027, up from the current 5 million barrels daily. Yet it remains a loyal OPEC member: when the head of SOMO, Iraq’s oil-exporting company, announced the capacity plans, he added that "The increase in these production rates will take place in coordination with OPEC and according to the decisions taken in line with oil market requirements."

OPEC+ agreed last month to reduce its combined production of crude oil by a nominal 2 million barrels daily, which would translate into an actual reduction of around 1 million barrels daily.

ADVERTISEMENT

This stabilized oil prices for a while before Covid updates from China began taking their toll. Earlier this week, the Wall Street Journal reported that the cartel was considering an increase in oil production ahead of the EU oil embargo on Russian oil.

According to the WSJ report, which quoted unnamed OPEC delegates, the output hike “could help heal a rift between Saudi Arabia and the Biden administration and keep energy flowing amid new attempts to blunt Russia’s oil industry over the Ukraine war.

The report prompted an immediate reaction from Saudi Arabia, which denied the information and suggested that it was, in fact, even open to further production cuts.

"It is well-known that OPEC+ does not discuss any decisions ahead of the meeting," Abdulaziz bin Salman told the Saudi state news agency.

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

ADVERTISEMENT


ADVERTISEMENT


Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News