Iraq wanted to stop the fall in oil prices by initiating negotiations with interested parties on a new agreement. This was reported by the Iraqi Oil Ministry.
Assem Jihad, a ministry spokesman, said the previous agreement to limit production ends in late March, and Iraq, for its part, is calling on OPEC member states and non-member states to reach an agreement that could restore balance to the global oil market. Otherwise, with an increase in oil production, according to Baghdad, all parties will suffer, including producing countries.
On March 6, OPEC participants and Russia were unable to agree on an additional reduction in oil production and did not extend existing restrictions. The reason was the position of Moscow, which considered the contract unprofitable since with its help additional volumes of shale oil are brought to markets by the United States.
After that, Saudi Aramco announced a sharp increase in production and offered customers a record discount for 20 years вЂ” up to 6-8 dollars per barrel. According to analysts, the actions of the kingdom are connected with the desire to punish Russia for its unwillingness to limit production. In turn, in Moscow, refusing the offer, they explained that all falling volumes compensate for the United States, which uses the OPEC + agreement to conquer new markets.
Against this background, the price of Brent oil fell to $35.60 per barrel.