Iraq News - Local News - Baghdadpost

Parliament to question al-Ghadhban about oil export contracts over past year

Iraq's Oil Minister Thamer Abbas al-Ghadhban
Iraqi House of Representatives has summoned Oil Minister Thamer al-Ghadhban to question him about the oil sell contracts that have been executed over the past year, according to MP of State of Law Alliance Alia Nassif on Tuesday.

The MP has questioned the minister about the price of crude barrel before and after the OPEC’s decision to slash the oil production, saying that oil prices went up after this decision.

 OPEC and a coalition of oil producers led by Russia reached an agreement Friday to join in a significant production cut by 1.2 million barrels a day (bpd).

The decision came three days after Minister Ghadhban said that OPEC should devise a long-term strategy to stabilize the price of crude oil and reduce damage to oil markets affected by geopolitics.

Iraq, OPEC’s second-largest oil producer following Saudi Arabia, almost completely relies on oil to generate its revenue. Over the past few years, the country has faced budget deficits due to the market’s unstable oil prices.

Iraqi officials have been lobbying for a cut in production in recent months.

Following two days of meetings, OPEC said they would cut 800,000 barrels per day for six months from January, though some countries such as Iran, which is facing US sanctions, have been given an exemption. The balance, according to AP, will come from Russia and other non-OPEC countries.