Monday, October 19
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Economist To NINA: No Fear From Oil Prices After OPEC’s Decision To Increase Oil Production

Baghdad, Economist Salam Samisem has ruled out a drop in oil prices after OPEC's recent decision to increase production by 1 million bpd by the end of this year, saying the price of oil will continue to rise to the end of the year and there will be no decrease, "

"The decline of Canadian oil by 150 thousand barrels, the decline of Libyan oil and the shortage of Iranian supplies all lead to higher prices," she said in a statement to the National Iraqi News Agency / NINA / noting that "the increase of oil production by million barrels will contribute to fill and compensate the shortage in the Organization due to political events in Iran and Libya. "

she added "The United States is trying to threaten the OPEC agreements by waving economic sanctions on Iran to pressure OPEC and its assets, while Saudi Arabia is complying with US demands and trying to raise the production ceiling to affect the volume of supply in the market to reduce them and raise prices at the same time."

"In all this, the political variable remains the control of the size of the demand-driven forecast for oil, which leads to higher prices due to lack of oil supply," she said.

The Organization of Petroleum Exporting Countries (OPEC) agreed last month to raise its production ceiling by 1 million bpd by the end of this year.

US President Donald Trump said the Organization of the Petroleum Exporting Countries (OPEC) monopolized oil production, adding: "They should remember that oil prices continue to rise and they do not do much to help lower their prices."

"They are driving oil prices higher, while the United States is defending many of the members of the international organization, for a few dollars," Trump said in a statement.

"The relationship between the United States and [OPEC] must be like a two-way street," he said.

"They have cut prices now," Trump said.

Oil prices have recently surged due to the uncertainty surrounding supply prospects, especially after Washington withdrew from the nuclear deal with Iran and announced sanctions on its oil exports.

In addition, the decline in US crude inventories and the expected US sanctions on Iran pose a threat to supply in a market that is already in short supply despite OPEC pledges to increase output to help lower prices.

Source: National Iraqi News Agency