A senior Iraqi official announced that the increase of Iraqi oil exports will not address the budget deficit because of the continuing decline in crude oil prices.
Amer Abdul-Jabbar, head of the office of the Iraqi Advisory, called on the Ministry of Oil to ask OPEC to reduce Saudi Arabia’s share of oil exports to deal with the deficit, reports Iraq-based Shafaq News.
Iraqi Planning Minister Salman Al-Jumaili on Sunday called on the World Bank to help the country face the fiscal deficit in the budget due to low crude oil prices in the world.
Saudi Arabia’s decided share of production by OPEC is 8 million bbl/d of oil, but the kingdom raised its output to more than 12mn bbl/d of oil and exports to 10mn bbl/d of oil to compensate the shares Iraq, Libya and Iran, says Abdul-Jabbar.
Iraq increased its oil exports by about 600,000 bbl/d, reaching 3.08mn bbl/d over the past month, at a price of $51, he adds, explaining that it is important that the Ministry of Oil ask OPEC to oblige the Saudi side to reduce its share by 600,000 barrels to maintain the prices of oil.
In case Iran and Libya increase their exports, Saudi Arabia is also required to reduce their share in order to avoid a plunge in oil prices due to oversupply.
Abdul-Jabbar concluded his statement by saying, “I expect oil prices to increase in the coming months, due to the Yemeni crisis and the reflection of the military and security effects on the Bab-el-Mandeb Strait and the Suez Canal.”