Iraq, Saudi Arabia and Iran has rejected the OPEC agreement to freeze production
September 30, 2016

Treasures Media / Agencies
Detection and Oil Minister Ali Jabar Luaibi, Iraq informed Saudi Arabia and Iran rejected the agreement between the oil exporting countries members of the UPC at the level of production of 32.5 million barrels a day.

It was for many years Kdhement differences between Saudi Arabia the largest oil producer in OPEC and rival Iran on the discussions at the conference hall of the organization.

But what if the two sides managed to reach a compromise rare solution on Wednesday, where he commuted Saudi stance towards Tehran even emerged as the third major power in OPEC, Iraq has surpassed Iran to become the second largest oil producer in the bloc for many years, but he has been out of the limelight within the organization, Finally Baghdad made everyone feel her presence at the meeting yesterday.

But what did Iraq not happy not Saudi Arabia or Iran.

Iraqi Oil Minister Ali Jabbar new Allaibi has informed his counterparts from Saudi Arabia Khalid al-Falih and Iran's Bijan Zanganeh in a closed-door meeting in Algeria as "a meeting of all OPEC ministers," according to a source familiar with what he said.

Allaibi He added that he did not favor the idea of ​​putting a cap on production again at 32.5 million barrels a day, according to sources in the organization.

Allaibi He informed the meeting that the new production ceiling is not appropriate to Baghdad because OPEC did not appreciate Iraq's production right amount after jumping in recent years .

Sources said that it was followed by a state of confusion and chose after the imposition of OPEC production ceiling in the range of 32.5-33 million barrels per day discussions, a decision criticized by many analysts as a weak and non-binding . The OPEC is currently producing 33.24 million barrels a day.

And left ministers, including al-Faleh and Zanganeh of the meeting smiling faces smile praising the first agreement for OPEC to cut production since 2008 , but the Allaibi called for holding a press to meet separately to complain about the OPEC estimates of Iraq's production .

He said Iraq's oil minister, told reporters that those figures do not reflect the actual production of the country and if not changed by November will not accept Iraq and so will demand alternative solutions .

Allaibi went even further and asked the journalist from Argus Media - OPEC statements that are used, among other sources to calculate the production countries - to reveal the sources of which they receive the Argus estimates .

The sources said that Argus is unacceptable and if there is a difference from the government data will not be allowed to work in Iraq Argus .

Allaibi insurgency shows the fragility of the OPEC agreement.

From now until November, when OPEC meets the official the organization must overcome significant hurdles to agree on a binding resolution .

Among some of the features that define at least a share of each state to make sure that Member reduction of excess global supply and pushing prices down by more than half since 2014 to less than $ 50 a barrel.

Iran insists on increasing its production to four million barrels per day as it pulled out from under European sanctions while Saudi Arabia proposes to install Iranian production at 3.7 million barrels per day.

Iraq has achieved a significant increase in production in the past years and asked major oil companies increased production to more than five million barrels per day from 4.7 million bpd now.

A source at OPEC, "the agreement is almost a farce. "

A source familiar with the Iranian thinking that reaching an agreement is a positive thing , "I will not give one to a free connection. Will develop technical committees details. "

Michael Wittner, head of research at Societe Generale believe that the decision shows that the Saudi abandon allowing market forces to manage supplies.

He said, "We will wait to see the actual amount of barrels that will emerge from the market* . For A..taatmthel important thing in that they sat in one room and made a decision. "