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Iraq supports oil cap to boost prices
September 23, 2016, 4:30 pm

Markets are looking to next week's oil producers' meeting for signs of an output ceiling. But previous OPEC summits, such as the one in Vienna above, failed to reach consensus [Xinhua]

Markets are looking to next week’s oil producers’ meeting for signs of an output ceiling. But previous OPEC summits, such as the one in Vienna above, failed to reach consensus [Xinhua]


Iraqi Oil Minister Jabar al-Luaibi has said in a statement that his country’s fixed policy will be to cap output at 4.75 to 5 million barrels a day in order to maintain a share of global energy markets.

Al-Luaibi also acknowledged that low oil prices have hurt oil producers and said that Iraq was in favor of measures to boost prices.

“Iraq’s oil policy aims at cooperating with the producers inside and outside OPEC to achieve the needed balance in supply and demand and the stability in the market,” he said in a statement released to the media.

Global energy markets are looking to an informal meeting of oil producers in Algiers next week for signs of a production quota. Previous attempts by OPEC and non-OPEC countries to reach a deal have failed.

Algeria’s state news agency cited government sources who said that if they manage to reach a consensus at next week’s meeting, they may call an extraordinary session to discuss oil prices.

Algerian Energy Minister Noureddine Bouterfa expressed optimism in an interview with Reuters Tuesday that some kind of deal could be worked out next week.

Earlier this month, Russian President Vladimir Putin said it was time for major oil producers – such as Russia and OPEC – to agree to an output cap.

Last week, Venezuelan President Nicolas Maduro said that OPEC and non-OPEC countries had almost reached a deal to stabilize oil markets and prices, adding that he expected the deal to be announced before the end of the month.

Venezuela, like Iraq, bases 95 per cent of its revenues on oil exports. The current oil glut has severely damaged Venezuela’s economy leading to food and medicine shortages.

The BRICS Post with inputs from Agencies

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