Iraqi Oil Minister Ihsan Abdul-Jabbar said that oil prices should stabilize around current levels, reflecting the market balance.
Iraq is counting on the price of oil to reduce the budget deficit, as next year’s budget is expected to witness an increase in the average price of a barrel, which was calculated at about $45 in the current budget.
Iraq has set the price of a barrel of oil at $50 in the 2022 budget, which is to be presented to the House of Representatives in the coming days.
Abdul-Jabbar added on the sidelines of his participation in the Russian Energy Week conference in Moscow: “The market should be balanced during the second half (of this year)… for us, it is balanced, and for consumers, we believe that the price will not be higher, and it will be balanced around $85.” barrel, we hope.
In its current budget, Iraq aims to achieve revenues of about 101.3 trillion dinars (69.5 billion dollars), including oil revenues of about 81.17 trillion dinars (55.6 billion dollars), amid expectations that it will rise above the budget estimates in light of the increase in oil prices in the majority of this year from the price specified in the budget.
The Iraqi Oil Minister ruled out that oil prices will continue to rise after they recorded their highest levels in more than 3 years this week.
Asked if OPEC+ should produce more oil than planned, Abdul-Jabbar said, “The market must be balanced… We believe the price will not rise,” Reuters reported.
The OPEC + alliance decided, at its meeting on October 4, to maintain the current agreement by increasing 400,000 barrels per day during the month of November.
OPEC+ analysis indicates that while the market is currently in short supply, a surplus could emerge as soon as December, S&P Global Platts reported.
Delegates said the coalition favored a more conservative approach, given uncertainties about recovery rates from the pandemic in key regions.
Iraq is the second largest producer of crude in OPEC after Saudi Arabia, and the third largest producer in the OPEC + alliance after Russia, and pumped 4.18 million barrels per day of crude in September.