Iraq Warns of New Drop in Oil Prices Without Agreement to Cut Production

Assem Jihad, a spokesman for the Iraqi Oil Ministry, said that Iraq was planning to cut oil production from 3.8 million barrels per day to 3.6 million in an attempt to prevent further price downfall as the country's oil revenues have diminished by 70 percent from $8 billion monthly to less than $3 billion due to the continuing global price drop.

BAGHDAD (Sputnik) — Iraq is expecting further reduction in global oil prices that will harm all oil producers if a general agreement to cut production is not reached soon, Assem Jihad, a spokesman for the Iraqi Oil Ministry, told Sputnik on Monday.

"Stubborn efforts by some countries to keep oil production at high levels are harming all oil producers. It is necessary to reach an agreement between countries-producers, withing the OPEC and other players outside the organization," Jihad said.

"The United States entering the oil export market, the return of Iran, the economic slowdown in China, the global economic crisis, as well as shale oil — these are all factors that would lead to a new drop in oil prices if an agreement to cut oil production is not reached," he stressed.

The official added that Iraq was planning to cut oil production from 3.8 million barrels per day to 3.6 million in an attempt to prevent further price downfall as the country's oil revenues have diminished by 70 percent from $8 billion monthly to less than $3 billion due to the continuing global price drop.