Iraq is considering lowering prices of high-octane fuels due to the economic and financial conditions striking the country as a result of the spread of COVID-19.
Hamed Younes, the deputy minister for refinery affairs, stated Sunday the decision aims to provide fuel for citizens at reasonable prices.
Iraq expects crude prices to remain at around USD41 to USD42 a barrel this year before rising to USD45 in the first quarter of 2021.
Oil prices slipped more than 1 percent on Friday after an oil workers' strike in Norway ended, which should boost crude output even as Hurricane Delta forced US energy firms to cut production.
Benchmark Brent crude ended trading on Friday at USD42.85 a barrel.
US West Texas Intermediate (WTI) crude fell 1.4 percent, to settle at USD40.60. Despite Friday's price slide, both benchmarks gained about 9 percent this week, their first increase in three weeks and the most significant weekly rise for Brent since June.
JP Morgan said that a worsening global oil demand outlook due to a potential rise in COVID-19 cases this winter would likely prompt OPEC to reverse a planned easing of oil cuts in 2021, with Saudi Arabia offering deeper cuts below its current quota.
Iraq's Oil Minister Ihsan Abdul Jabbar stated that Iraq’s exports in October stand at 2.6 million barrels a day and will continue at this level in line with the OPEC+ agreement on limiting global output.
The government is basing its 2021 draft budget on a price of USD42 a barrel, given the impact of the coronavirus pandemic on demand, Jabbar said.
Iraq remains committed to the OPEC+ deal, including extra cuts to compensate for the country’s previous overproduction, he reiterated, stressing that Iraq “is looking forward to achieving more cooperation with OPEC member producers to achieve common goals to maintain stability of the price of a barrel of oil in the global market.”
