Iraq’s muddled weekend comments on oil – deciphering continues

Adam posted over the weekend on Iraq’s oil minister comment suggesting they won’t agree to any additional cuts at the June 1 OPEC+ meeting. Adam added that:

What’s not clear is if he meant:

1. They will extend the current cuts but won’t cut anymore
2. They won’t curtail production at all, abandoning the current quotas

The minister has clarified. The brief explanation is that Iraq will do what its told to do by OPEC:

• Iraq’s oil minister said any extension to output cuts is a matter for OPEC, and the country will stick to whatever the group decides.
• “Extending the voluntary reduction on crude oil is subject to agreement between OPEC countries,” Oil Minister Hayyan Abdul Ghani told reporters Sunday. “Iraq is part of OPEC and it is necessary that we adhere to and agree with any decisions issued by the organization.”

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Trade in oil futures begins at 6pm US Eastern time pon Sunday evening. Despite the clarification, I expect we’ll get some opening range volatility.

This article was written by Eamonn Sheridan at www.forexlive.com.