On Tuesday, the Iraqi Oil Minister Thamer Ghadhban announced the country’s approach to historical production in crude oil. He said Iraq is too close to reaching oil production capacity at 5 million barrels/ day. The country is also moving to add 2 million barrels/ day during the next couple of years. Ghadhban added that Iraq is still burning half of the associated gas production. He said the new projects to convert gas to liquid will contribute to resolving the problem. Iraqi Deputy Prime Minister for Energy and Oil Minister, Thamir Abbas Ghadhban said Iraq is well committed to the agreement to decrease its oil production.
He said the total production of Iraq will be less in the coming days than it was produced during the last couple of months. Ghadhban pointed out the need to raise production because of the summer months to increase consumption Domestic fuel to cover power plants. The oil prices increased in world markets on Tuesday since the beginning of August, at that time the price of Brent barrel exceeded 63 U.S dollars. The recent increase in the oil price comes after the new energy minister of Saudi Arabia, Prince Abdulaziz bin Salman announced the commitment of his country to a policy of limiting crude oil production.
The Saudi Crown Prince, King Salman bin Abdul Aziz issued a royal order on Saturday and appointed Prince Abdul Aziz bin Salman bin Abdul Aziz Al Saud to relieve the Minister of Energy Khalid Al-Falih from his position. Prince Abdul Aziz is known in the corridors of the oil industry as an accomplished negotiator with long experience in the conclusion of agreements within the OPEC (Organization of Petroleum Exporting Countries). The relations Russia and Saudi Arabia have developed since 2016 after OPEC and a number of non-OPEC producers formed an alliance called OPEC +. Russian energy industry sources have indicated that they don’t expect any cooperation change between Russia and Saudi Arabia. It is due to both sides are getting benefits from their relations.