Baghdad agree with Riyadh the issue of conservation of oil production – RIA Novosti

Baghdad agree with Riyadh the issue of conservation of oil production – RIA Novosti

MOSCOW, December 29 – RIA Novosti. Iraq Saudi Arabia fully agree on the issue of preservation of existing oil production quotas. In an interview with the newspaper “Al-Sharq al-Awsat” said Iraqi Oil Minister Adel Abdel Mahdi.

World oil prices have fallen sharply since the summer of this year. Experts attribute this to an excess supply in the market. OPEC’s decision of 27 November to maintain oil production quota at 30 million barrels per day increased the price collapse. OPEC decision to leave production quotas was taken after statements by the Minister of Energy of Saudi Arabia Ali Al-Naimi, according to which an organization must protect its market share and to prevent a fall in prices to reduce production outside OPEC. In turn, as recalled by the newspaper, Algeria has put forward an alternative proposal to the decline in oil production by 5%, which is about 1.5 million barrels per day.

According to the Mahdi, Bagh dad is seriously interested in the possibility of oil exports transit through Saudi Arabia, which was discontinued after the Gulf War.

© AP Photo / Hasan Jamali

Currently, there are different views about what Saudi Arabia, speaking against reducing oil production quotas, trying to coordinate their policies with the United States to weaken Russia’s positions.

Earlier, amid growing demand in the market of Saudi Arabia went voluntarily to reduce the purchase price for its brand of oil, some media and analysts immediately dubbed outlined the “price war”.