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Published On: Thu, Jan 5th, 2017

Iraq Cuts Back Oil Production Under OPEC Deal

nsnbc Iraq, on Thursday began the implementation of cuts in oil production in line with the OPEC agreement reached in December 2016.

Oil_oil Field_ADThe agreement to cut back production in December came in response to plummeting oil prices in 2015 – 16, after OPEC member Saudi Arabia began flooding the market.

Iraqi Oil Minister Ali al-Luaibi said his country started with the advent of the new year to cut national crude oil production in line with an historic OPEC agreement reached in December.

In a statement published by the Ministry, he added that “Iraq stresses its commitment to the OPEC decision adopted during the latest meeting in Vienna, applying a well-studied plan to reduce production from the county’s oilfields at the beginning of the new year.”

Al-Luaibi noted that Iraq is working with OPEC members and non-members to control the huge supply in the world market, and to achieve the required balance between supply and demand in a way that boosts prices. He added that there will be no need for the cuts once producers’ goals are achieved.

OPEC producers agreed in December to cut daily production by 1.2 million barrels a day starting January. Iraq pledged to cut 210.000 barrels a day after a long-time reluctance as it had complained of a crisis-hit economy and struggle against terrorism. Current Brent Crude rates stand at more than US$55 per barrel. Venezuela has also begun cutbacks.

F/AK – nsnbc 05.01.2016

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