Oil Expert: Extension Of The Production Cuts Until The End Of 2018 Will Raise Oil Prices To $ 70

BAGHDAD,  OPEC’s agreement to extend the production cuts by the end of 2018 will raise oil prices to $ 70, the oil expert Hamza al-Jawahiri said, stressing the importance of monitoring the oil market well.

Al-Jawahiri said in a statement to the National Iraqi News Agency (NINA) that “Iraq sought to bring the views of members of the Organization (OPEC) for the extension to obtain a fair price of oil between 65 and 70 dollars, and this was achieved by extending the period of production until the end of 2018, stressing that this step will contribute to raise oil prices to 70 dollars. ”

Al-Jawahiri stressed that the Organization of Petroleum Exporting Countries should monitor the oil markets so as not to raise prices above the $ 70, because then the oil will enter the market as a competitor, so the market should be monitored well, and the geopolitical changes in the region should be monitored, so as not to reflect the worst.’

Oil Minister Jabbar al-Luaibi said that all indicators with the decision to extend the nine-month, which members aim to achieve greater stability of the world markets, stressing that OPEC’s decisions contributed to stop the deterioration of oil prices.

Oil prices rose after OPEC and non-OPEC producers, led by Russia, agreed to extend the production cuts agreement until the end of 2018, while they also hinted at a possible exit from the deal ahead of schedule if there is a sharp rise in the market.

Global Brent crude futures ended today at 46 cents, or 0.7 percent, at $ 63.57 a barrel.

US benchmark WTI futures closed up 10 cents, or 0.2 percent, to $ 57.40 a barrel.



Source: National Iraqi News Agency