Iraq prime minister says his country will cut oil production
Al-Abadi said for every dollar oil prices rise, Iraq gains about $1 billion
Iraq’s prime minister says his country will agree to cut its own oil production as part of a plan by OPEC to push crude prices higher.
Prime Minister Haider al-Abadi told The Associated Press that current prices are not sustainable for oil-producing countries.
Al-Abadi’s comments could be critical because Iraq - along with Iran - has been reluctant to go along with cuts, creating an obstacle for an OPEC deal, according to published reports.
Al-Abadi said he understands that OPEC members will agree to reduce production by between 900,000 and 1.2 million barrels per day - that would be a cut of between 2.7 percent and 3.6 percent from October levels. He said it would be enough to push prices up.
“Yes, we will take our share and we agreed to this,” he told the AP.
Benchmark international oil rose $1, or 2 percent, on Monday to close at $48.24 a barrel. Al-Abadi said for every dollar oil prices rise, Iraq gains about $1 billion.
In late 2014, as crude prices tumbled from more than $100 a barrel, OPEC countries decided not to intervene - they expected falling prices to drive high-cost producers in the U.S. out of business.
But a worldwide glut of oil has persisted and OPEC has been pumping at record levels. Now the cartel is trying to regain some of its historical ability to affect prices.
- Militia smuggle 40,000 barrels of oil to Iran daily
- Total CEO says will lower oil production if govts decide on quota
- Iraq says to cut 2017 budget gap on lower expenditures, higher oil income
- Iraq foreign reserves drop to $50 bln on falling oil income
- Iraq’s oil minister wants country to increase output in 2017