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Iraq hopes for stable oil market

9 December 2016 13:40 (UTC+04:00)
Iraq hopes for stable oil market

By Gulgiz Muradova

Iraq’s Oil Minister Jabbar Allibi expressed hope to witness stability in the oil market already in the first half of 2017.

Allibi said that Iraq is going to participate in the meetings of OPEC with the producers from outside the organization in Vienna on December 10, Trend reported referring to the Iraqi Oil Ministry.

The minister noted that the decision of OPEC to cut the production and the response of the producer countries from outside the cartel is a significant step to control the supply glut in the global market during the next period, and elevate the prices gradually.

The commitment of the producer countries inside and outside the cartel can be an effective key factor to stabilize the oil market and achieve the common targets, according to the minister.

He pointed out that Iraq was and still working on to stabilize the oil market and maintain the unity of OPEC.

The world's largest producers agreed to curb production for the first time since 2008 in a bid to support prices after the Vienna meeting on November 30. The OPEC, which accounts for a third of global oil supply, agreed to cut production from January by around 1.2 million barrels per day (bpd), or over 3 percent, to 32.5 million bpd.

Iraq, OPEC's second largest producer which had previously resisted cuts will cut output by 200,000 bpd to 4.351 million bpd.

Saudi Arabia said it would take the lion's share of cuts - reducing output by almost 500,000 bpd to 10.06 million bpd - to get the deal done. Iran was allowed to boost production slightly from its October level.

Non-OPEC member Russia agreed to cut output by 300,000 bpd.

OPEC will meet with non-OPEC producers on December 10 to mull the cut quotas. The invited countries are Russia, Mexico, Oman, Kazakhstan, Bahrain, Colombia, Congo, Egypt, Trinidad and Tobago, Turkmenistan, Azerbaijan, Bolivia, Brunei andUzbekistan.

Azerbaijan, Kazakhstan, Oman, Mexico and Russia have agreed so far to meet the group for talks aimed at widening a deal to reduce output.

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