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12 Jul 2019

Iraq’s Minister of Oil: Cooperation will enhance market stability and investment potential

The extension of production adjustments under the ‘Declaration of Cooperation’ (DoC) will help stabilize the market and reduce price volatility, says HE Thamir Abbas Al-Ghadhban, Iraq’s Minister of Oil, who also praised the “very good” atmosphere between the 14 OPEC countries and their 10 non-OPEC partners.

Speaking on the sidelines of the 6th OPEC and Non-OPEC Ministerial Meeting in early July, Al-Ghadhban welcomed the endorsement of the draft text of the ‘Charter of Cooperation’, a high-level voluntary commitment to enable the continued proactive dialogue between countries in the DoC at both the ministerial and technical levels. The draft Charter was endorsed at the OPEC/non-OPEC meeting on 2 July.

“There are many positive sides in this arrangement, in this Declaration of Cooperation between the two groups, and we expect that there will be further cooperation and that the relationship between OPEC and non-OPEC MCs will be enhanced by this Charter,” Al-Ghadhban said in an interview after the OPEC/non-OPEC meeting.

“The atmosphere is really very good,” he said of the cooperation the OPEC and non-OPEC partners who agreed to extend production adjustments by nine months through the end of March 2020.

The continued cooperation “also calls for encouraging investment in the oil industry and therefore it will make the work more sustainable,” the Iraqi Minister of Oil added. “The other advantage is it will ensure enough supply of oil to the consumers. By working for stability and avoiding volatility, it will ensure a fair price for the producers, as well as for the consumer. So the objectives are noble objectives. They are for the good of the whole world.”

Al-Ghadhban also told Reuters on 10 July that the extension of the production adjustments under the ‘Declaration of Cooperation’ would lower oil inventories, help stabilise the market and address price volatility. He spoke to Reuters at an energy conference in Baghdad.