Oil Ministry Spokesman Essam Gehad said "There is not anything that necessitated extending the OPEC agreement for an addition period because the objective behind it has been achieved by reaching out a unified stance to reduce oil prices worldwide.
All market indicators are positive and signaled that there was no need for extending the OPEC agreement to reduce crude oil output for another six months.
Upon the OPEC deal, Iraq has reduced its production of crude oil by 160,000 barrels per day to reach to its targeted quota of production which is estimated at 210,000 barrels by the end of the current month.
Energy ministers of OPEC member-states, who met in Vienna on Sunday, voiced upbeat over the agreement clinched two years ago to reduce crude oil output.
On Sunday, OPEC and other oil producers agreed on a way to monitor their compliance with last month’s historic supply deal, putting global markets on track to re-balance after more than two years of oversupply.
The countries have already cut oil supply by 1.5 MMbpd, more than 80% of their collective target, since the deal took effect on Jan. 1, Saudi Arabia’s Minister of Energy and Industry Khalid Al-Falih told reporters in Vienna.
“Compliance is great—it’s been really fantastic,” Al-Falih said Sunday. “Based on everything I know, I think it’s been one of the best agreements we’ve had for a long time.”
Saudi Arabia, Kuwait, Qatar, Algeria and Venezuela met counterparts from non-OPEC nations Russia and Oman to find a way to verify that the 24 signatories to their Dec. 10 accord are fulfilling pledges to remove a combined 1.8 MMbopd from the market for six months. They intended to prove the Organization of Petroleum Exporting Countries is serious about eliminating a global glut and dispel skepticism stemming from previous unfulfilled promises.
An OPEC committee, comprising ministers from Kuwait, Russia, Algeria, Venezuela and Oman, will meet next on March 17 in Kuwait and again in May. OPEC’s secretariat will present it with a report on the 17th day of each month, the group said in a statement. A technical group, consisting of delegates from each of the five committee members along with OPEC president Saudi Arabia, will meet each month to prepare the report.
The monitoring committee will assess data submitted by each producer country, along with information from agencies such as IHS Cambridge Energy Research Associates, Argus Media Ltd. and the International Energy Agency, Russian Energy Minister Alexander Novak said. The committee will evaluate compliance with production targets only, though the technical group may also look at export data to support its analysis, Novak said.