February 1, 2023

The Iraqi Oil Marketing Company (SOMO) confirmed that the OPEC plus production cut decision did not result in a reduction in Iraq’s oil exports, and while she talked about the group’s next meeting and expectations for it, she suggested prices next year would be between 85 – $95 minimum.

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Saadoun Mohsen, Assistant CEO and Iraq Representative to OPEC, said: “The decision by OPEC plus to cut production by two million barrels per day has played an important role in stabilizing global markets, and the reduction has affected all countries at different speeds and in accordance with their volume of production.” .

He added: “OPEC plus produces 43 million barrels per day, and the share of what Iraq produces is 11% of that, and therefore this is the same percentage of reduction as a result of the decision to cut production by two million barrels.”
He pointed out that “Iraq did not cut its exports in line with this cut, but rather reduced domestic production and invested in high prices, stabilizing the export rate, a strategy that generated high financial returns.”

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He continued: “The OPEC Plus Group meets every two months to assess the global market in terms of supply and demand, and there are major fluctuations due to the impact of the coronavirus pandemic, the global economic slowdown and Russian-Ukrainian relations. a war that added to the burden of price stability.”

He pointed out that any “future decision to maintain the current reduction or add a new reduction or increase in production will take into account the situation in the market and aim to create a balance, and there will be a meeting on December 3-4 to study the current situation and make informed decisions.”

Regarding oil price expectations next year, Mohsen said: “The average price this year has reached $97 per barrel, which is a good price. According to experts, prices next year will be between $85-95 and possibly less than $5 per barrel. 7 at least.

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