OPEC likely to roll over a deal on supply cuts: Iraq’s oil minister

OPEC likely to roll over a deal on supply cuts: Iraq’s oil minister

Iraq’s oil minister Thamer Ghadhban said on Thursday that Organization of Petroleum Exporting Countries (OPEC) is likely to come up with a deal at a meeting next week to cut supplies and put curbs at the same level as those currently in place since January 1.

A deal between OPEC and its allies like Russia to curb the output by 1.2 million barrels would be over by the end of June. OPEC members would meet on July 1 to 2 in Vienna to discuss the next move.

Reuters reported that Ghadhban said, “The rollover at least would be at the same level because it has not been very effective, it has been effective to a certain level to minimise the glut in the market, but there are now ideas or calls for agreeing (on) even more.”

Ghadhban also told that Exxon had completed an evacuation of its staff from an oilfield in southern Iraq for security reasons.

The officials of Iraqi government said that security concerns and contractual wrangling have held back a deal of $53 billion to encourage Iraq’s oil output at its southern fields. Ghadhban said that the two sides were also drawing up a heads of agreement on a new energy deal with the United States firm.

“We are now working on final draft of our agreement. The point has to do with pricing, inflation and deflation, related to cash flow how to look at the price and returns. It is purely a technical point, not political,” he said.

Pooja Nair

After a 3-year stint at DNA as a journalist, Pooja Nair is currently working as a freelance writer and editor. She has written for Indian newspapers and magazines, publishing houses, brands, and individual authors. Pooja writes mainly on culture, spirituality, health and wellness, fashion, parenting, academics, business, and politics. When not writing, she is busy managing her automotive website www.dreamwheels.in

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