“Iraq is seeking to play an active role in order to support oil prices while preserving a share that is proportionate to its reserves”, Luaibi said.
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Oil prices fell about 1% on Monday as Iraq’s production rose and Iran said it would co-operate in producer talks to freeze output only if fellow exporters recognised its right to fully regain market share.
International Brent crude oil futures LCOc1 were trading at $49.54 per barrel at 0043 GMT (8.43 p.m. ET), down 38 cents from their previous close.
Luaibi, who became oil minister this month, said Iraq wants to “strengthen OPEC’s role in achieving a balance in the oil market”, but his comments on continuing to increase output suggested it was not looking to take part in a possible agreement to freeze output. It’s not in their interest to halt output.
Saudi Arabia, the biggest producer in the Organization of the Petroleum Exporting Countries, advocated an output freeze earlier this year but no deal was reached after Iran, which is just emerging from sanctions, refused to join.
Any decision to stabilise the market will require the full participation of all OPEC members and major suppliers from outside the group, Al Mazrouei said.
“The key to a successful freeze agreement will once again likely be Iran”, Barclays analysts including Miswin Mahesh and Kevin Norrish wrote in a note dated August 28.
Producers that destabilized oil markets have the greatest responsibility to steady them, Zanganeh said, according to Shana, without identifying any such countries. “Iran had no role in disrupting the stability of the oil market”, he said. Recent data shows that Since sanctions were lifted in January, Tehran has doubled oil exports to 2.7 million barrels per day.
At the same time, Iranian Oil Minister Zanganeh said Iran will work with other OPEC members to support oil prices, but it will not move from its goal of restoring output lost due to years of economic sanctions. It’s now pumping about 3.85 million barrels a day, Zanganeh told Fars news agency on August 10. Reuters said that Saudi Energy Minister Al-Falih that the Kingdom does not believe any significant intervention in the market is necessary “other than to allow the forces of supply and demand to do the work for us”.
The OPEC Reference Basket (ORB) is made up of the following oil brands: Saharan Blend (Algeria), Girassol (Angola), Oriente (Ecuador), Rabi Light (Gabon), Minas (Indonesia), Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela).
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“An agreement seems some way off, if not impossible”, said Stuart Ive, a client manager at OM Financial.
