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Sunday, July 13, 2025

Opec: Iraq violence not causing reduction in oil output

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20140624

BRUS­SELS–The head of Opec, the group of ma­jor oil ex­porters, says re­cent crude price in­creas­es are to blame on mar­ket fears caused by the cri­sis in Iraq but not on a drop in out­put.Opec Sec­re­tary Gen­er­al Ab­dul­lah Al-Badry said yes­ter­day that Iraq was "still pro­duc­ing as nor­mal," with 95 per cent of its ca­pac­i­ty in the coun­try's south be­ing un­af­fect­ed by the vi­o­lence.

The price for a bar­rel of Brent crude, the key in­ter­na­tion­al bench­mark, has risen from a sta­ble lev­el of US$110 held over the past four years to about US$115 fol­low­ing the takeover of some parts of Iraq by Sun­ni in­sur­gents.Al-Badry says prices are not ris­ing be­cause of sup­ply short­ages but be­cause the mar­ket is "ner­vous" and in­vestors are spec­u­lat­ing.He adds Opec still has spare ca­pac­i­ty.

AP


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