Is OPEC’s No.2 Finally Complying With Output Cuts?
By Tsvetana Paraskova - Jun 09, 2020, 10:00 AM CDT
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OPEC’s second-largest producer, Iraq, which also happens to be the least compliant member of OPEC+ since the group started managing supply to the market in 2017, may have finally started taking its obligations seriously.
Iraq’s State Oil Marketing Organization (SOMO) has asked some of the Asian buyers of its Basrah crude grades if they could give up delivery of some already contracted cargoes for loading this month and next, sources familiar with the matter told Bloomberg News on Tuesday.
The request for buyers to forgo some cargoes for those months suggests that this time, Iraq may be earnest in its attempt to play ball in the OPEC+ production cuts, after being the biggest cheater in all previous pacts.
Iraq’s (as well as Nigeria’s) non-compliance with the record OPEC+ cuts in May nearly wrecked last week’s meeting of the pact, ahead of which the two leaders of the group, Saudi Arabia and Russia, had insisted that there would be an extension by one month to the current level of cuts only if laggards in compliance ensured over-compliance going forward to compensate for flouting their quotas so far.
OPEC+ agreed on Saturday to extend the record production cuts of 9.7 million bpd by one month through the end of July, contingent on all countries in the pact complying 100 percent with their quotas and compensating for lack of compliance by overachieving in the cuts in July, August, and September.
Before the meeting, Iraqi Deputy Prime Minister and then-acting Oil Minister, Ali Allawi, vowed that his country would further reduce production as it remains committed to the OPEC+ pact.
At the video news conference following the OPEC+ meeting, Saudi Arabia’s Energy Minister, Prince Abdulaziz bin Salman, emphatically said on Monday that “We have no room whatsoever for lack of conformity.”
Today, Iraq’s new Oil Minister, Ihsan Abdul Jabbar Ismaael, confirmed in a phone call with his Saudi counterpart Iraq’s “full commitment” to the cuts, OPEC said in a press release on Tuesday. Iraq confirms “its commitment to the voluntary oil production adjustments of June and July 2020, as well as the voluntary adjustments for the period following the end of July, despite the economic and financial challenges,” Ismaael told the Saudi energy minister.
By Tsvetana Paraskova for Oilprice.com
China: America is the most serious threat to world peace
2019-12-11 | 07:24
Today, Wednesday, the Chinese Foreign Ministry spokeswoman described the United States as "the most serious threat to world peace," noting that Washington continues to fabricate charges against other countries.
Chun Ying said, in press statements, that the United States is doing this to start wars around the world, so the United States poses a great threat to international peace and security.
And this week, The Washington Post revealed testimonies and statements by American officials indicating that the US government was hiding the truth from the war in Afghanistan, and contradicted what the US presidents and military leaders announced that they had made progress in Afghanistan and that there was a requirement to enter into this war. .
What the newspaper disclosed is a slap in the face for American officials advocating for human rights, according to a spokeswoman for the Chinese Foreign Ministry, but only reveals the visible portion of the floating iceberg.
Ying said that the United States took allegations of weapons of mass destruction in Iraq as a pretext for directing military strikes in this country, which led to tens of thousands of casualties and the displacement of many Iraqis. Later the United States recognized that this pretext was fabricated and that evidence of weapons of mass destruction in Iraq’s possession was washing powder.
Finally, the United States used the proofs of the White Helmets evidence of "chemical attacks" in Syria as an excuse to direct air strikes in this country, which led to many casualties and the displacement of many.
Hua Chun Ying pointed out that the United States is still fabricating the charges in order to start wars around the world, and thus has become the most serious threat to international peace and security and has also become the most serious violation of human rights.