Top energy officials from Iraq, Russia, and Saudi Arabia held a crucial meeting in Baghdad on Tuesday, just days before the OPEC+ alliance’s year-end gathering, Bloomberg reports.
The meeting, which included Iraqi Prime Minister Mohammed Shia Al-Sudani, Russian Deputy Prime Minister Alexander Novak, and Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman, focused on the volatile global energy market and the future of oil production.
A statement from the Iraqi Prime Minister’s office revealed that the discussions centered on stabilizing global oil prices and ensuring sufficient supply to meet global demand. The emphasis on maintaining “stability and fair prices” highlights the delicate balancing act OPEC+ faces in the current market.
The OPEC+ alliance, jointly led by Saudi Arabia and Russia, is scheduled to meet on December 1st to decide whether to resume oil production cuts that have been twice delayed. The planned increase, originally slated for October, has been postponed due to persistently weak crude oil prices. Several unnamed delegates have indicated a further postponement is likely.
The meeting in Baghdad comes against a backdrop of challenges for several OPEC+ members. Iraq and Russia, along with Kazakhstan, have faced difficulties in meeting their agreed-upon production cuts implemented earlier this year. While they’ve made progress in recent months, they still haven’t fully compensated for initial overproduction, raising questions about their ability to contribute to any potential production increases in January.
The discussions in Baghdad suggest a concerted effort by key OPEC+ players to coordinate their approach before the crucial December 1 meeting.
