Bitumen price in Iraq

Bitumen price in Iraq

As you can easily guess, this article is about to talk about the bitumen price in Iraq.

Therefore, we have brought some pieces of news in this regard. Hope you find them useful.

For the second month in a row,

Saudi Arabia has refused to announce its crude oil prices on time for next

month, coinciding with the postponement of the OPEC Plus meeting. Saudi Aramco traditionally rates its oil production on the first five days of each month. However, with the start of the oil war with Russia and its aftermath,

the eyes of this Middle Eastern oil giant are waiting for the

OPEC Plus meeting and its outcome.

Bitumen price in Iraq and the world’s events

Generally speaking, the delay in announcing the bitumen price in Iraq could

also affect the oil prices of other Gulf states, as Riyadh’s allies in OPEC

usually look to the Aramco price list to determine their oil prices. Respectively, the OPEC Plus summit, in other words, the return of Riyadh and Moscow

to the negotiating table to reach an agreement and declare a ceasefire in this oil war. In fact, Russia’s dispute with Saudi Arabia at the March 6 summit was

as the death of OPEC Plus, marking the beginning of a new shock to

world oil markets.

Meanwhile, the President of the United States of America sought mediation

to prevent the fall of oil prices as much as possible. The announcement of

the immediate OPEC Plus meeting, scheduled for Monday, April 6,

was the result of US consultations aimed at rescuing shale oil producers;

Oil that will not be profitable to produce if such conditions continue. On April 2, the US president raised prices by 24% in a tweet expressing hope for a

10 million barrel cut in production. However, the oil market has a

long way to go to see stability.

 

Iraq bitumen 80/100

 

Bitumen price in Iraq and the OPEC Plus

Needful to mention that postponing the OPEC Plus meeting means

continuing Saudi Arabia’s maximum production policy; A policy that,

with a significant reduction in market demand, will lead to price

reductions so that Riyadh will gain more market share in Asia and Europe than Moscow. Moreover, Saudi Arabia announced last month that it would

increase production from 9.7 million barrels per day to 12.3 million barrels per day. However, how does OPEC Plus play such a role in the market?

Why should Saudi Arabia, as OPEC’s largest oil exporter,

wait for such a meeting and agreement with Russia?

Bitumen price in Iraq and OPEC Plus; from birth to coma

The Organization of Petroleum Exporting Countries (OPEC) in December 2016, after experiencing two years of falling prices in world markets,

agreed with a group of non-OPEC producers to reduce production. Additionally, these non-member countries, along with OPEC, were able to regulate the

market following a review of oil production and supply in 2017. Joint

consultation and policy-making between 10 oil-producing countries,

including Russia, along with 13 OPEC members, is as OPEC Plus. In practice, before April 6 this year, OPEC Plus was a coalition led by Moscow and Riyadh to

regulate the market with their production and supply volumes;

for this reason, Moscow’s opposition to reducing production was

as the death or collapse of OPEC Plus.

It’s also good to know that the OPEC Plus has formed with the

intention of accompanying producers such as Russia, Mexico,

the Republic of Azerbaijan, Bahrain, Sudan, South Sudan, Malaysia and

Oman with the Organization of Petroleum Exporting Countries in

regulating the market. This coalition is not just to reduce production,

but perhaps the most accurate phrase is to determine a common market regulation policy; For example, in the middle of 2018, they decided it increase

the production ceiling to prevent oil prices from exceeding $75 so that

high prices do not negatively affect demand.

Oil prices and the bitumen price in Iraq

A look at the circumstances that led to the formation of OPEC Plus

shows a change in OPEC’s strategic policy. In addition, the oil cartel has

not sought to increase market share in recent years but has made price

control a priority. As a matter of fact, a coalition of OPEC and non-OPEC

members met four years ago at an Algerian summit for a joint policy, remembering the sweet taste of $110 oil and seeing oil prices fall below $30. This year, however, OPEC Plus leaders have pushed up prices by announcing

an increase in crude oil production, along with factors such as the outbreak

of the new Coronavirus and declining market demand. The increase in these

two major producers is while Iran and Venezuela are also

exempt from production reduction due to US sanctions.

Roughly speaking, market conditions and bizarre action by the two

main OPEC Plus producers have been so astonishing that 12 US

senators have sent a letter to the Crown Prince of Saudi Arabia asking him to

act as “agent and guarantor of market stability.” It is unlikely that 60 years

ago, the leaders of the founding members of OPEC could have imagined that

one day US senators would ask a member of the organization to reach

the so-called oil market.

To sum up…

In other words, the event that the world has witnessed in the past month is

not only the disruption of a coalition under the name of OPEC Plus by

Moscow but also Riyadh taking a path contrary to OPEC strategy. The result of the April 6 meeting was a demonstration by the Saudi court and the Kremlin

that national interests outweighed institutional and international interests; Moscow did not make a collective decision to make the most of the

opportunity to impose sanctions on Iranian oil, and Riyadh added to

its production to leave no room for US shale oil. As the final point,

the coalition of OPEC and non-OPEC, led by the Saudi court and

the Kremlin, was not stable and orderly.

 

 

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