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Iraqi Oil Minister: We Plan to Increase Production to 8 Mn bpd

Iraqi Oil Minister: We Plan to Increase Production to 8 Mn bpd

Tuesday, 14 January, 2020 - 12:15
A worker walks at Rumaila oil field in Basra, Iraq (File Photo: Reuters)

Iraqi Oil Minister Thamer al-Ghadhban said his country plans to raise the production capacity of crude oil during the next two decades.

In official statements, Ghadhban said the Oil Ministry will proceed to achieve a technological, economic, and administrative transition, through proper work and planning to enhance the national content to keep pace with the great development in the global oil industry.

The Ministry will increase oil and gas production according to the plan "to reach rates from 6 to 8 million barrels in the next two decades.”

Crude oil production levels in Iraq are currently more than 4.45 million barrels per day.

Oil prices stabilized amid concerns over the dispute between the US and Iran, while investor interest shifted to the much-awaited trade agreement between the US and China scheduled for this week, which will boost economic growth and demand.

It also reported that oil prices have surged to their highest in almost four months. This follows the US-drone killing of the Iranian military commander Qassem Soleimani and Tehran’s response by firing missiles at US bases in Iraq.

According to Reuters, Brent crude futures were up $0.20 at $65.18 a barrel. West Texas Intermediate (WTI) also rose $0.16 at $59.20 a barrel.

Samsung Futures Seoul commodities analyst Kim Kwang-rae said the possibility of the war between the US and Iran has disappeared.

“For the week, the signing of the US-China trade deal would lift oil prices on expectations for higher demand.”

The US and China have scheduled to negotiate an interim trade deal in Washington on Wednesday.

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