Adam posted a comment from Iraq’s oil minister over the weekend, suggesting he would not agree to any further cuts at the June 1 OPEC+ meeting. Adam added that:
What is not clear is whether he meant:
- They will extend the current cuts but will not cut any more
- They will not reduce production at all, abandoning the current quotas
The minister clarified. The short explanation is that Iraq will do what OPEC tells it to do:
- Iraq’s oil minister said any extension of production cuts was a matter for OPEC and the country would stick to any decision by the group.
“The extension of the voluntary reduction on crude oil is subject to an agreement between OPEC countries,” Oil Minister Hayyan Abdul Ghani told reporters on Sunday. “Iraq is part of OPEC and it is necessary that we join and accept all decisions issued by the organization.”
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Trading in oil futures begins at 6 p.m. US Eastern Time on Sunday evening. Despite the clarification, I expect we will get some volatility in the opening range.
This article was written by Eamonn Sheridan at www.forexlive.com.
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