The price of oil is affected by the recent statements made by Iraq declaring it does not intend complying with any decision made by OPEC to cut oil output. Immediately following the informal encounter between OPEC and non OPEC countries held in Algiers over these last weeks, those taking part in fact agreed upon an overall reduction in extraction standing at a million less barrels per day. And if the market initially responded positively to this announcement, with the price per barrel rising to over $50, in the days subsequent to that both Russia and - now - Iraq (not to mention Iran) have made it known they have no wish to limit extraction. Hence the engagement of November 30 is closing, date in which OPEC should communicate to the market the percentages by which each country will cut their oil production, with the country's in disarray. Meanwhile, Libya is also back on the market, having now resumed - albeit to minimal figures - the production of crude oil.
Iraq itself announced it reached a production of 4.776 million barrels a day in September alone, the figures being communicated by Iraq's deputy oil minister, Fayadh al-Nema. Out of the total production, 4.228 million barrels per day were produced from petroleum sites in the area of Baghdad, while 546,000 have been extracted from KRG plants. "We have passed the threshold of 4.7 million barrels and there is no doubt there will be no going back for any reason. Neither for OPEC nor for anyone else."
On the side-lines, lastly, amongst the meetings worth mentioned, the summit that took place yesterday, October 23, between Saudi Arabia and Venezuela to develop strategies capable of stabilizing the oil market.