Iraq Opposes Calls for OPEC Production Boost

Iraq Opposes Calls for OPEC Production Boost
Iraqi Oil Minister Jabar al-Luaibi speaks during news conference at the ministry of oil in Baghdad, Iraq November 27, 2017. REUTERS/Thaier Al-Sudani

Iraqi oil minister Jabar al-Luaibi released a statement on June 11 in which he warned producers against being pressured to boost output levels, adding that unilateral decisions could collapse the OPEC and non-OPEC supply cut agreement, Reuters reported.

Luaibi stated that producers “should not over-exaggerate the need of the oil market for more oil supplies for the time being, which could cause big harm to the global markets.”

“This could be misinterpreted by speculators and consumers, leading to a significant fall in oil prices and this is unacceptable to us,” he continued.

With oil prices reaching their highest level since 2014, the possibility of easing production cuts may be on the agenda for the upcoming OPEC meeting in Vienna on June 22-23.

Luaibi “rejects unilateral decisions by some oil producers without consulting the rest of the members,” warning that this “could violate the agreement in one way or another and could lead to the collapse of the agreement.”

OPEC member Venezuela has experienced significant supply disruptions, while Iranian production is expected to fall once US sanctions are reintroduced. This has led to speculation that Saudi Arabia and Russia may propose a gradual increase in production to offset the supply cuts.

“Producers should deal wisely and with vision with the facts on the ground without being influenced by pressures and conflicting calls to pump more oil into the market, which could lead to undesirable results,” Luaibi said.

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