The price of oil on world markets is plummeting. According on 08:41 GMT, December Brent futures fell 0.65% to 51.57 USD per barrel. And on WTI rose by 0.73% to 50.59 per barrel.
The cause of the falling prices were extremely out of place now statements by the oil Minister of Iraq and head of the export state company SOMO (State Oil Marketing Organization). In your own words these two officials were able to spoil the whole positive impression from the Sunday meeting of the energy Ministers of Russia and Saudi Arabia.
Note that the market on the outcome of talks between Novak and Khalid al-falikha could just take off, because they expressed a common point of view on the freeze. This means that at the summit in Vienna, the two largest oil producer in the world will act together.
But then the head of SOMO Falah al-Amri gave Iraq its prey will not reduce strictly. It would have nothing, because of the massive reduction of the global production nobody talks, but the Iraqi oil Minister Jabar al-Libi hastened to completely ruin the mood of the traders.
He called on OPEC to give Iraq the same benefits as Nigeria, Libya, that is to allow even to freeze the level of oil production. Al-Libi explained that Baghdad, which is a difficult war with a terrorist group “Islamic state” (banned in Russia), very much needed funds so he can’t fix the production.
Thus, to freeze the prey do not want to have four countries: Iran, Nigeria, Libya and Iraq. It is easy to understand why the market started Monday with a collapse. It is now unclear what will remain of global fixing of profit, if it will give the producers a total of about 10 million barrels of oil per day.
