Falah Alamri, director general of the oil marketing company in Iraq, has expressed the need for the world's biggest producer nations to temporarily freeze oil production to prop up the crude price.
"They should do this deal as this is the only way to support the oil price. Everybody needs it and Iraq supports this deal," Alamri said.
This statement came in ahead of a meeting of ministers from Opec and non-Opec countries, which will be held in Doha, Qatar, this Sunday. The goal of the meeting is to gather countries from defacto Opec leader Saudi Arabia to Russia and Venezuela and discuss the possibility of freezing oil output in an attempt to accelerate the end of an oil surplus.
"Demand is increasing and supply is decreasing as American shale oil especially is falling. The timing is right. A deal would now be effective," Alamri said.
According to a report by Financial Times, Iraq is "pushing for a freeze at January levels." Data shows that Iraq pumped 4.5m barrels a day. The country is considered to be the main source of output growth over the past two years.
Alamri also said that the only sticking point among producer nations is Iran's participation in any deal and the level at which production should be frozen.
On the other hand, Rosneft, a Kremlin-backed oil major, announced early this week that the current trend experienced by the oil industry will not last. The company's head said that the low prices ae temporary as the price of Brent crude ascended to a new high this year.
Igor Sechin, head of Rosneft, said that a price of at least $50 per barrel was necessary to prevent future supply shortages. "The oil price is growing. I think everyone is expecting the successful outcome of our work," Sechin said. "We will need higher price levels than $45 or even $50 a barrel."
