Saudi Arabia requires Iraq and Iran to reduce their output of oil to balance

2015-12-04 01:01:14

| (Voice of Iraq) - Baghdad

Energy Intelligence Bulletin announced that Saudi Arabia stipulated that Iraq and Iran to reduce their output of oil to achieve a balance in the oil market.

According to Reuters, citing Energy Intelligence enterprise specialized in the field of petroleum in its prospectus that "Saudi Arabia will propose an agreement aims to achieve a balance in the oil market to reduce the Organization of the Petroleum Exporting Countries production (OPEC) by one million barrels per day next year, but only if the commitment of other members of the Organization and producers countries from the outside, such as Russia, Mexico, Oman and Kazakhstan joint efforts. "

Bulletin quoted a senior OPEC delegate that "the proposed agreement includes Saudi prove that Iraq oil production at the current level of around four million barrels a day and engage Iran, which expects a lifting of Western sanctions imposed on it in early 2016 those efforts."

Saudi Arabia and will be proposed in the case of reaching an agreement on it a surprise as it was expected widely to keep the OPEC meeting on Friday on the current production policies despite falling prices and oversupply.

The proposal is seen with suspicion as an attempt to deter the demands of less wealthy member states such as Venezuela by showing a willingness to work with but impose strict conditions are difficult to implement.

Member States did not participate in OPEC with producers not members of the Organization to address the decline in oil prices in 15 years and that was after the Asian financial crisis in 1998. Since then, resisted by Russia is not an OPEC member claims a common position and instead increased its production 70 percent.

Analysts and OPEC sources said it would be difficult to obtain Alaguetrah consent of all parties concerned, as Iraq struggles to adjust the budget, despite the significant increase in production, while Iran says the competitors took the market share during the years of imposed economic sanctions on Tehran.