Iraq increased its oil production in December. The country that is a major member of OPEC oil cartel may have contravened the agreements on production restrictions to support prices with other OPEC countries such as Saudi Arabia and a number of allies including Russia (OPEC+).

According to tanker data and Port reports analysed by Bloomberg Press Agency, Iraq produced 4 percent more oil last month. Once again, Iraq would have failed to comply with commitments on production restrictions.

On Monday, the OPEC+countries did not agree on the production restrictions to be applied by February. Russia proposed to increase production. Saudi Arabia, OPEC’s largest oil producer, and a number of other countries disagreed. On Tuesday, the countries continue to talk.

The failure to reach an agreement by February put pressure on oil prices. A barrel of American oil was traded for $ 47.48 on Tuesday morning. That meant a price drop of 0.3 percent compared to a day earlier. Brent oil became 0.4 percent cheaper at $ 50.90 a barrel.

OPEC+ earlier decided that from January, 500,000 barrels may be pumped daily, although the demand for oil is still under pressure due to the corona crisis. Thereafter, it would be decided on a monthly basis whether further production restrictions were necessary.

About the author: Nick Schramm

Nick Schramm is tech savvy with strong engineering education behind. His interest in sciences helps the whole WeeklyNewsReview stuff to keep informed about various topics of the modern technology.

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