SULAIMANI (ESTA) — Iraqi oil minister Ihsan Jabbar said on Sunday that Iraq would not ask OPEC for exemption from a pact aimed at reducing output, according to al-Sabah newspaper.
OPEC and allies including Russia are leaning towards delaying next year’s planned increase in oil out to support the market during the second wave of coronavirus and rising Libyan production, three sources close to OPEC+ told Reuters last week.
OPEC+ was due to raise output by 2 million barrels per day (bpd) in January – about 2% of global consumption – as it moves to ease this year’s record supply cuts. With demand weakening, the gorup has been considering delaying the increase.
“This increase in prices is about sentiment, but we need to extend to have solid market fundamentals to support the prices,” one of the sources said. “So far, the best choice is the three-month extension.”
Reuters reported that Iraq had talked about being exempt from 2021 reductions.
Al-Sabah newspaper cited Jabbar as saying that the commitment of OPEC+ members to the deal would help boost oil prices.
Iraq was not seeking exemption “fearing from new retreat in oil prices,” Jabbar added, noting that oi prices are expected to reach about $50 at the beginning of 2021.
A panel of OPEC+, a group of leading oil producing countries, is expected to hold informal online talks on Sunday, a source with the knowledge of the matter told Reuters on Saturday.
OPEC+ will meet on November 30 and December 1 to decide output policy for next year.
