MOSCOW (Pakistan Point News / Sputnik - 29th November, 2020) Iraqi Oil Minister Ihsan Abdul Jabbar has said that the OPEC+ countries' willingness to adhere to the oil production cups envisaged by the corresponding agreement will raise the oil price, hopefully to $50 per barrel in early 2021, Al-Sabaah newspaper reported on Sunday.
"The OPEC countries' desire to adhere to the parameters of production cuts will significantly raise the prices to a certain level," Abdul Jabbar said, as quoted by the Iraqi media outlet.
According to the newspaper, the minister expects the oil prices to reach $50 per barrel in early 2021, adding that his forecast was based on "the signs of a slight recovery of the global demand after the lockdowns implemented to counter the coronavirus pandemic."
Abdul Jabbar added that Iraq had not requested the Organization of the Petroleum Exporting Countries (OPEC) to exempt the country from the deal, the media added.
In April, oil prices dropped to $20.18 per barrel amid the decreasing in demand caused by the pandemic. The negative trend forced Russia and Saudi Arabia to initiate an agreement among the OPEC+ countries aimed to cut oil production and stabilize the market. The OPEC+ deal came into force in May, resulting in a reduction in oil production by 9.7 million barrels per day for three months. Since August, the alliance has agreed to continue cutting output, but less - by 7.7 million barrels per day until the end of the year, and then - by 5.8 million until the end of April 2022.
