Economist expects voluntary oil production cut to be halted
Economist expects voluntary oil production cut to be halted
2-2-2025
Information/Baghdad…
Economic expert Safwan Qusay said on Sunday that the voluntary reduction in oil production is likely to be halted through American pressure, noting that halting the reduction will result in an ineffective decline in oil prices.
Qusay told Al-Maalouma, “When oil is exported from the south, the federal budget bears the costs of providing the service by the companies that carry out extraction operations within the licensing rounds in the center and south.”
He added that “the transition to exporting oil from the region’s fields, and with the existence of production-sharing contracts, the costs will be higher for producing oil from the region’s fields,” noting “the importance of resuming oil exports towards the Turkish port of Ceyhan in order to give Iraq additional export capacity.”
He explained that “the Trump administration is trying to pressure OPEC to remove the voluntary cuts in oil production, and therefore the coming days may witness the return of production to its normal levels, meaning that prices may decline relatively, but this process will be compensated for by increasing quantities, and therefore the presence of 400 thousand barrels exported from Kirkuk and the region towards Ceyhan will allow the design capacity of Iraqi oil production to be operated.”
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