Iraqi Official: OPEC+ meeting to take into account market conditions

“The OPEC+ meeting in December will take into account the condition and balance of the market,” Iraq's state news agency quoted Saadoun Mohsen, a senior official at the country's state oil marketer (SOMO), as saying on Saturday.

Elsewhere, the talks among the members of the Group of Seven Nations (G7) and the European Union (EU) continue to drag on the Russian oil price cap. As per the latest updates, the $65 per barrel is the sticking point as discussions are likely to resume on Monday.

Additional comments

OPEC+'s October decision to reduce production by two million barrels per day (bpd) had played an important role in stabilising global markets.

The cut hadn’t reduced Iraq's exports.

Iraq's current production represents 11 percent of the group's total output of 43 million barrels per day (bpd).

Iraq expects a crude price range of at least $85-95 next year.

Oil markets are witnessing ‘severe fluctuations’ due to the repercussions of the pandemic, a slowing global economy and the war in Ukraine, making it harder to ensure price stability.

Market implications

 The news should exert downside pressure on the WTI crude oil prices which dropped to $76.30 by the end of Friday’s trading session.