Sumo: Oil prices for the next year may range between 85-95 dollars per barrel
Sumo: Oil prices for the next year may range between 85-95 dollars per barrel
2022-11-27
The National Oil Marketing Company (SOMO) confirmed, on Saturday, that OPEC Plus’s decision to cut production did not reduce Iraq’s oil exports, and while it talked about the next meeting of the group and expectations regarding it, it suggested that prices next year would be between 85-95 dollars at the very least.
“The OPEC Plus decision to reduce production by two million barrels per day had an important role in stabilizing global markets, and the reduction included all countries at varying rates and according to the amount of their production,” Saadoun Mohsen, the company’s deputy general manager and representative of Iraq in OPEC, told state television.
He added, “OPEC Plus produces 43 million barrels per day, and the proportion of what Iraq produces is 11% of it, and therefore it is the same percentage of reduction by the decision to reduce production by two million barrels.”
He pointed out that “Iraq did not reduce its exports according to this reduction, but rather reduced domestic production and invested in high prices by stabilizing the export rate, a strategy that succeeded in achieving high financial revenues.”
He continued, “The OPEC Plus group meets every two months to assess the global market in terms of supply and demand, and there are severe fluctuations due to the repercussions of the Corona pandemic, the slowdown in the global economy, and the Russian-Ukrainian war, which added burdens to price stability.”
He pointed out that any “future decision regarding maintaining the current reduction or adding a new reduction or increasing the quantities produced will take into account the market situation and aim to create balance, and there will be a meeting on December 3-4 next that will study the current situation and issue balanced decisions.”
Regarding expectations for oil prices next year, Mohsen said, “The average price this year has reached $97 per barrel, which is a good price. According to experts’ estimates, next year prices will be between $85-95 and maybe less than $5-7 as a minimum.”
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