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6 Arab countries affirm commitment to OPEC + agreement

…Led by Saudi Arabia

Saudi Arabia, the Emirates, Kuwait, Bahrain, the Sultanate of Oman and Iraq have affirmed their full commitment to the agreement to reduce oil production between OPEC + countries.

The energy and oil ministers of the six countries stressed, during a joint phone call Friday afternoon, the importance of all countries participating in the OPEC Plus agreement achieving target production levels for them, in order to accelerate the rebalancing of the global oil market.

The joint phone call took place between the Minister of Energy in the Kingdom of Saudi Arabia Prince Abdulaziz bin Salman bin Abdulaziz; Suhail bin Mohammed Al Mazrouei; Minister of Energy of the United Arab Emirates, and Dr. Khaled Ali Al-Fadhel; The Minister of Oil of the State of Kuwait, and Sheikh Mohammed bin Khalifa Al Khalifa; Bahrain’s Minister of Oil, and Dr. Muhammad bin Hamad Al-Ramahi; Minister of Energy in the Sultanate of Oman, and Ihsan Abdul-Jabbar Ismail, Minister of Oil in Iraq.

In a joint statement, the energy and oil ministers called on countries whose production exceeded the rates set for them in the months of May, June and July, to compensate for these quantities.

In their call, the ministers reviewed the recent developments in the global oil markets, the continuing recovery in the global economy and the demand for oil, and they also discussed the progress that has been made towards restoring balance to the oil market.

“The Ministers noted that the recent signs of improvement in the global economy are very encouraging, and they commended the efforts made by countries around the world to reopen their economies in a safe manner.

The Ministers expressed their appreciation to Iraqi Oil Minister Ihsan Ismail for his great efforts and cooperation to achieve balance in the oil markets, stressing the importance of Iraq’s role in the success of the OPEC Plus agreement.

OPEC Plus agreement

The ministers reaffirmed that full commitment to the OPEC Plus agreement and the compensation system will accelerate the recovery of the global oil market for the benefit of oil producers and consumers, the energy industry, and the global economy as a whole.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, what is known as OPEC +, have reduced production by 9.7 million barrels per day since last May, or 10% of global supplies, after the virus undermined a third of global demand.

And the coalition moved to the second phase of the agreement beginning this August, by easing production restrictions by about two million barrels per day.

But the increase in coalition production is expected to come to less than two million barrels per day, given that Iraq and Nigeria pledged to compensate for the higher production level in May and June with cuts greater than their pledge.

Iraq cuts 1.25 million barrels per day

On Friday morning, Iraqi Oil Minister Ihssan Abdul-Jabbar said that his country will add a cut of 400,000 barrels per day of its production in August to compensate for the increased production in the past period under the OPEC + agreement.

A joint statement by Prince Abdulaziz bin Salman, Saudi Energy Minister and Iraqi Oil Minister Ihsan Abdul Jabbar, stated that Abdul-Jabbar “affirmed Iraq’s steadfast commitment to the OPEC + agreement,” adding that “Iraq will reach 100% commitment to the agreement at the beginning of this August. “.

He explained that this reduction is in addition to the reduction of 850 thousand barrels per day, which Iraq committed to in August and September, under the current OPEC + agreement.

According to the pledge of the Iraqi oil minister, the total reduction in Iraqi production in August and September will reach 1.25 million barrels per day per month, and the reduction rates will be adjusted after the six secondary sources publish their production figures.

The two ministers affirmed that the efforts made by the countries participating in the OPEC + agreement towards adhering to the production reduction rates, as well as the additional reduction rates within the framework of the compensation system, will enhance the stability of global oil markets, accelerate the achievement of their balance, and send positive signals to the markets.

A statement issued yesterday, Thursday, by the Iraqi Oil Ministry and the Iraqi Oil Marketing Company, SOMO, confirmed that the oil production cuts in August will be more and higher than agreed upon for this month.

Decline in Iraqi oil exports

The Iraqi Ministry of Oil had announced a decline in oil exports during the month of July. In compliance with the OPEC + agreement to reduce production; The volume of crude exports reached 2.7 million barrels per day, with revenues of about $ 3.5 billion.

And Iraq’s oil exports in June had decreased to 2.8 million barrels per day, from 3.21 million barrels per day in the previous month. This means that Iraq has largely fulfilled the production cut agreement.

The ministry’s spokesperson, Asim Jihad, said in a previous statement: “Despite the reduction in production and export rates in compliance with the OPEC + agreement, financial revenues have increased, compared to previous months.”