Iraq’s Deal With Oil Majors Could Crush OPEC’s Output Freeze Plans

by Tsvetana Paraskova
Oil Price

Iraq and oil majors BP (NYSE:BP), Shell (NYSE:RDS.A) and Lukoil have agreed to resume investments in oil fields the foreign groups are developing, which is expected to raise the country’s crude output by 250,000-350,000 barrels per day in 2017, Reuters reported on Thursday, quoting Iraqi officials—a move that has the potential to aggravate the supply glut and muddy the waters of the additional OPEC meeting in September, which some were glass-half-fulling might end with a production cap of some sort.

The recently reached accords actually push projects that the companies had originally planned for the first half of 2016 to the second half. The projects had been previously put on hold due to the low crude prices.

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