The Strategist

Iraq expects oil price at $70 in 2022

09/21/2021 - 10:46

Oil prices will be at $70 a barrel in the first quarter of 2022, Iraq's oil minister predicted. Earlier this week, Brent rose above $76 for the first time in a month and a half.

Oil prices will be around $70 a barrel in the first quarter of 2022. This was announced by Iraqi oil minister Ihsan Abdul Jabbar, Bloomberg reports.

According to the minister, the price will be affected by the stabilization of the energy market achieved through increased OPEC+ oil production, as well as increased demand after the coronavirus pandemic. "The global economy is in recovery," Jabbar noted. 

He, however, said it was too early to say whether OPEC+ would maintain its plan to increase oil production at its next meeting on October 4. The countries participating in the deal will make a decision after "discussing the market situation", the minister said. 

He added that Iraq's total oil exports in September this year averaged 3.4m bpd, Reuters reported.

At the last OPEC+ meeting, which was held on September 1, the participants of the organization agreed to keep the previously approved plan to increase oil production by 400,000 bpd each month. Brent dropped to $71.41 on the news.

However, it has already risen above $76/bbl on September 15. The last time it exceeded that value was on July 30 this year.