Iraq beyond Iran to become the second-largest oil producer for many years

Iraq beyond Iran to become the second-largest oil producer for many years


Iraq beyond Iran to become the second-largest oil producer for many years(Independent) … for many years dominated the differences between Saudi Arabia the largest oil producer in OPEC and rival Iran on the discussions at the conference hall in Anizh.bhsp Reuters.

But what if the two sides managed to reach a compromise solution to a rare, yesterday, where softened its stance towards Tehran Kingdom, even emerged as a major force in the third OPEC.

Iraq has surpassed Iran to become the second largest oil producer in the bloc for many years, but he has been out of the limelight within the organization, and finally Baghdad made everyone feel her presence, but what he did to Iraq is not happy not Saudi Arabia or Iran.

Iraqi Oil Minister Ali Jabbar new Allaibi has informed his counterparts from Saudi Arabia Khalid al-Falih and Iran’s Bijan Zanganeh in a closed-door meeting in Algeria as “a meeting of all OPEC ministers,” according to a source familiar with what he said.

Allaibi He added that he did not favor the idea of ​​putting a cap on production again at 32.5 million barrels a day, according to sources in the organization.

Some OPEC members is seen to re-work the roof of the production has been abandoned a year ago because of differences Arabia-Iran as a crucial factor to help the organization manage oversupplied market and support prices, which fell to a much lower than the budget for the needs of the majority of producers.

But Allaibi informed the meeting that the new production ceiling is not appropriate to Baghdad because OPEC did not appreciate Iraq’s production right amount after jumping in recent years.

Sources said that it was followed by a state of confusion and chose after the imposition of OPEC production ceiling in the range of 32.5-33 million barrels per day discussions, a decision criticized by many analysts as a weak and non-binding. The OPEC is currently producing 33.24 million barrels a day.

And left ministers, including al-Faleh and Zanganeh of the meeting smiling faces smile praising the first agreement for OPEC to cut production since 2008, but the Allaibi called for holding a press to meet separately to complain about the OPEC estimates of Iraq’s production.

He told reporters that those figures do not reflect the actual production of the country and if not changed by November Iraq will not accept it and will demand alternative solutions.

Allaibi went even further and asked the journalist from Argus Media – OPEC statements that are used, among other sources to calculate the production countries – to reveal the sources of which they receive the Argus estimates.

The sources said that Argus is unacceptable and if there is a difference from the government data will allow Argus to work in Iraq.

From now until November, when OPEC meets the official the organization must overcome significant hurdles to agree on a binding resolution.

Among some of the features that define at least a share of each state to make sure that Member reduction of excess global supply and pushing prices down by more than half since 2014 to less than $ 50 a barrel.

Iran insists on increasing its production to four million barrels per day as it pulled out from under European sanctions while Saudi Arabia proposes to install Iranian production at 3.7 million barrels per day.

And subjected Riyadh cut production to 10.2 million bpd from 10.7 million bpd, but most analysts believe it will reach this level in any way with the decline of summer heat and reduced the need for air-cooling devices.

Iraq has achieved a significant increase in production in the past years and asked major oil companies increased production to more than five million barrels per day from 4.7 million bpd now.

A source at OPEC, “the agreement is almost a farce.”

A source familiar with the Iranian thinking that reaching an agreement is a positive thing, “I will not give one to a free connection, will develop technical committees details.”

Michael Wittner, head of research at Societe Generale believe that the decision shows that the Saudi abandon allowing market forces to manage supplies.

He said, “We will wait to see the actual amount of barrels that will come out of the market, for me it is important that they sat in one room and made a decision.” (End)