Iraq says OPEC & allies may extend oil output curb to 1.6 million bpd

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Iraq says OPEC & allies may extend oil output curb to 1.6 million bpd

On Sunday, the 1st of December 2019, the Iraqi oil minister, Thamir Ghadhban, said that the OPEC (Organization of Petroleum Exporting Countries), a 14-member pact of crude oil exporting nations alongside its allies were contemplating an option to stretch current output curb by about 400,000 barrels per day to a 1.6 million barrels per day, a comment which would likely to surge crude oil futures’ prices on Monday (December 2nd) morning ahead of a meet of OPEC+ nations on December 5th in Vienna, Austria.

Nonetheless, latest comment from Iraqi oil minister, Thamir Ghadhban, followed a shocking response from OPEC’s one of the closest allies, Russia, energy minister of which was quoted saying earlier on Friday (November 29th) that the OPEC+ nation was seeking to prevent an extension of output curb amid growing grudges from its state-backed oil agencies.

However, Iraq’s Ghadhban said to the reporters in Baghdad earlier on Sunday (December 1st) that the OEPC members alongside its allies were sketching out a plan to incline further output cut at their scheduled meet in Vienna on December 5th and 6th.

In point of fact, an announcement of output cut was widely expected following this year’s December OPEC+ meet ahead of an Aramco IPO, fate of which would largely depend on crude oil futures’ price, while analysts said that the Saudi oil giant would require US crude oil futures’ price to stay above $60 per barrel in order pay its promised dividend of $75 billion by October next year, which seemed to have highly unlikely amid a robust US inventory build, unless the OPEC+ could install further output curbs to rebalance the global crude oil market.