ECONOMY
Iraq's Minister of Oil Ihsan Abdul Jabbar Ismail looks on during a press conference after the 45th Joint Ministerial Monitoring Committee and the 33rd OPEC and non-OPEC Ministerial Meeting in Vienna, Austria, on October 5, 2022. Photo: Vladimir Simicek/AFP
ERBIL, Kurdistan Region - Iraq’s oil Minister stated on Wednesday that the OPEC+ decision to reduce production will not impact the country’s exports and will return “stability” to the global market.
The ministers from the 13-nation OPEC group and Russian-led exporters met in Vienna on Wednesday and agreed to cut oil production by two million barrels per day starting from November.
“Iraq’s exports will not be affected by this reduction, as a result of managing internal consumption,” Iraq’s Minster of Oil Ihsan Abdul-Jabbar Ismail said, as quoted by Iraqi state media.
“This decision will return with more stability and balance to global oil markets, and to the national economy,” he added.
Ismail emphasized that OPEC+ members and allies outside the organization are seeking to stabilize the supply and demand on the international market as well as in Iraq.
“The decision to reduce production was in line with the wise policy pursued by OPEC + during the past years, which is proactive in precautionary measures to confront the fluctuations of the oil market,” he stated.
Following OPEC’s announcement of the biggest cut since the COVID-19 pandemic in 2020, oil prices rose according to AFP.
US President Joe Biden slammed the decision to cut production as “shortsighted” according to a White House statement.
White House spokesperson Karine Jean-Pierre said it was “clear that OPEC+ is aligning with Russia.”
Saudi Energy Minister Prince Abdulaziz bin Salman dismissed claims that the decision would negatively impact the market.
Oil prices increased amid shortfall fears following Russia's invasion of Ukraine in February, with the US repeatedly urging members of the oil cartel to increase their oil production in an effort to balance the market.
The Iraqi government depends on oil revenues to pay the salaries of civil servants and cover the costs. The country’s economy is once again booming as oil prices are increasing globally despite suffering in much of 2021 due to record low oil prices.
It had pocketed $9.7 billion from oil sales In august, the lowest record in six months. However, it brought Iraq's 2022 total gross from oil sales to over $81.6 billion, already surpassing the entire revenue of 2021 which was $75.6 billion.
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