Baghdad Sources in OPEC + suggested, today, Wednesday, that the organization will keep its oil production policy unchanged at its meeting next Sunday, after the meeting of the Saudi and Iraqi energy ministers at the end of last week, who stressed the importance of adhering to production cuts that will continue until the end of 2023.
According to sources in the Organization of the Petroleum Exporting Countries, it is also likely that additional production cuts will be considered to boost prices, which have fallen due to fears of an economic slowdown, according to Reuters.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, known as OPEC+, meet as demand faces headwinds from slowing economies and China’s COVID-19 lockdown, while an EU ban on Russian crude imports looms. A ceiling on G7 prices for Russian oil places is a question mark on supply.
The drop in oil prices, after nearing an all-time high of $147 a barrel in March, has been driven by the conflict in Ukraine.
And in October, OPEC+ agreed to cut production by 2 million barrels per day – equivalent to 2% of global supply – causing one of its biggest clashes with the West as the US administration described the abrupt decision as short-sighted.
Saudi Arabia, OPEC’s largest exporter, said on November 21 that OPEC+ is committed to production cuts and could take further measures to balance the market.
Source: National Iraqi News Agency