Iraq does not rule out more OPEC+ measures to halt oil price slide: oil minister

Dubai — Iraq, OPEC's second-largest oil producer, does not rule out OPEC+ members taking extra measures to halt the further slide of oil prices, but any steps will need to take into account global oil market developments, the country's oil minister said on Tuesday.

Iraq's Thamer al-Ghadhban, who participated in a video-conference meeting among some OPEC+ ministers on Tuesday, said any new OPEC+ measures also will depend on the extent of compliance of coalition members and producers outside the alliance with output cuts, the oil ministry said in a statement.

The meeting of OPEC+, a coalition of OPEC and other oil producers, was held on Tuesday following the tumbling of WTI prices into negative territory on Monday for the first time ever due to shortage of storage in the US.

OPEC+ members agreed earlier this month to rein in output by a record 9.7 million b/d in May and June and gradually reduce those cuts through April 2022.

Iraq's comments echoed those of Saudi Arabia.

The Saudi Arabian cabinet on Tuesday affirmed its desire for oil market stability and commitment with key non-OPEC partner Russia to implement the agreed production cuts.

The cabinet expressed "readiness to take any extra measures in cooperation with members of OPEC+ and other producers,” according to a statement on state-run Saudi Press Agency.

WTI June contract was trading 5.45% lower at $10.99/b at 0855 GMT, while Brent was down 10.5% at $17.30/b.

Acceleration of cuts

The June NYMEX contract settled 43% lower day on day Tuesday, while Brent settled down 24% as stocks continue to build amid substantial declines in demand.

Iran, which is exempt from the oil output cuts, called on fellow members in OPEC to speed up their output curbs and urged producers outside the OPEC+, such as the US and Canada, to join the production cuts, said Iranian oil minister Bijan Zanganeh in a televised interview on Wednesday.

The oil price crash and oversupply "require acceleration of production cuts and seriousness in it and also if necessary, OPEC and non-OPEC and especially producers who didn't enter any commitment in this period, like shale producers in the United States and Canada, should take other actions to overcome this global crisis," said Zanganeh, adding:

"I think OPEC cannot solve this problem alone like in the past. This is not a local issue. It demands global cooperation and effort."