Iraqi Oil Minister Says Oil at $75-$80 a Barrel Fair to Producers, Consumers

Oil prices fell during yesterday's trading near $80 a barrel (Reuters)
Oil prices fell during yesterday's trading near $80 a barrel (Reuters)
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Iraqi Oil Minister Says Oil at $75-$80 a Barrel Fair to Producers, Consumers

Oil prices fell during yesterday's trading near $80 a barrel (Reuters)
Oil prices fell during yesterday's trading near $80 a barrel (Reuters)

Iraq's oil minister said that oil at $75-$80 a barrel was a fair price for producers and consumers, adding that his country was seeking to expand its production and export capacity in the coming years.

Oil prices traded above $83 a barrel on Wednesday, their highest since October 2018, amid a global energy crunch and a decision by the Organization of the Petroleum Exporting Countries and its allies to stick to a small increase in production next month.

Ihsan Abdul Jabbar told the Energy Intelligence Forum that Iraq aims to raise its oil production capacity by some 3 million barrels per day (bpd) to 8 million bpd by the end of 2027.

The OPEC member is also targeting raising its crude export capacity to 6 million bpd from 4 million bpd now by the end of 2024.

He added that talks with US oil major Chevron Corp (CVX.N) on developing the Nassiriya oilfield, which is estimated to hold about 4.4 billion barrels of crude, could reach final agreement in the next few weeks.

He said that the Iraqi National Oil Company (INOC) will hold a stake of no less than 40 percent in the joint partnership with Total Energies (TTEF.PA) in a project the French major is developing in the country.

Total Energies will build four energy projects in southern Iraq under a $27 billion deal signed in Baghdad last month.

In a related context, US crude oil and gasoline inventories rose last week as production rebounded as more offshore oil facilities returned from last month's storm-related shut-ins, the Energy Information Administration said on Wednesday.

Crude inventories rose by 2.3 million barrels in the week to Oct. 1 to 420.9 million barrels, compared with analysts' expectations in a Reuters poll for a 418,000-barrel drop.

Crude stocks at the Cushing, Oklahoma, delivery hub rose by 1.5 million barrels in the last week, EIA said.

Refinery crude runs rose by 329,000 barrels per day in the last week, EIA said. Gasoline inventories also increased by 3.3 million barrels to 225.1 million barrels over that period.

Brent hit $83.46 a barrel, reaching its highest level since October 2018. WTI also hit its seven-year-high level with $79.78 a barrel.



Vision 2030 Progress Accelerates Saudi Arabia’s Economic Growth

The Saudi capital Riyadh. SPA
The Saudi capital Riyadh. SPA
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Vision 2030 Progress Accelerates Saudi Arabia’s Economic Growth

The Saudi capital Riyadh. SPA
The Saudi capital Riyadh. SPA

Saudi Arabia is nearing the end of the second phase of its Vision 2030 plan (2021-2025), a period that has seen strong growth and expanding opportunities across multiple sectors, with key economic indicators reflecting the Kingdom’s progress.

Performance data for 2024 shows that Saudi Arabia, the Arab world’s largest economy, is firmly on course to meet its Vision 2030 targets, with a significant number of metrics exceeding initial projections.

According to the latest figures, 93% of the tracked indicators have been either fully or partially achieved. A total of 299 indicators have met their goals entirely.

Meanwhile, data on Vision 2030 initiatives show that 85% have either been completed or remain on schedule, with 674 initiatives fully implemented and another 596 progressing according to plan, out of a total of 1,502 active initiatives.

Saudi Arabia’s economy continued to expand in 2024, with real non-oil GDP rising by 3.9% year-on-year, driven by a 4.3% increase in non-oil sectors. The non-oil private sector Purchasing Managers’ Index (PMI) also posted a strong performance, climbing to 58.1 points in the fourth quarter.

The Kingdom’s unemployment rate among Saudi citizens fell to a record low of 7% in 2024, achieving the Vision 2030 target six years ahead of schedule, compared to 12.3% in 2016.

Meanwhile, Saudi Arabia maintained inflation at 1.7% by the end of 2024, one of the lowest rates among G20 nations, supported by balanced economic policies.

Boosting Competitiveness

Saudi Arabia advanced to 16th place in the 2024 IMD World Competitiveness Ranking, up from 36th in 2017, reflecting ongoing reforms to improve the business environment.

Global credit rating agencies also reaffirmed their confidence in the Kingdom’s economic outlook. Moody’s maintained Saudi Arabia’s rating at “A1” with a stable outlook, Fitch Ratings assigned it “A+” and S&P Global rated the Kingdom at “A/A-1.”

A Vibrant Society and Ambitious Nation

Saudi Arabia recorded major achievements on the social and cultural fronts. The number of UNESCO World Heritage sites in the Kingdom rose to eight, reaching the Vision 2030 target ahead of schedule.

The number of foreign Umrah pilgrims hit a record 16.92 million in 2024, surpassing the year’s target of 11.3 million.

Homeownership among Saudi families reached 65.4% in 2024, exceeding the year's target of 64%.

In digital governance, Saudi Arabia climbed to sixth place globally in the United Nations E-Government Development Index, rising 25 spots and nearing its Vision 2030 goal of fifth place.

Volunteerism also surged, with the number of volunteers exceeding 1.2 million, surpassing the Vision 2030 target of one million volunteers and reflecting a growing culture of civic engagement.

Positive Growth Outlook

International institutions forecast a strong outlook for Saudi Arabia’s economy in 2025.

The Organization for Economic Co-operation and Development (OECD) projects growth of 3.8%, the International Monetary Fund (IMF) expects 3% growth, and the World Bank forecasts an expansion of 3.4%. Saudi Arabia’s Ministry of Finance projects a higher growth rate of 4.6%.

The sustained economic momentum and rapid transformation under Vision 2030 have strengthened Saudi Arabia’s position as an attractive investment destination and a rising hub for promising opportunities.