Responding to the Drop in Worldwide Oil Prices
The Republic of Iraq congratulates all the Organization of Petroleum Exporting Countries member states for reaching a deal this November that will, without a doubt, bring health to the world economy. This deal marks a historic effort made between the Organization of Islamic Cooperation member states. Iraq would like to give special acknowledgement to Saudi Arabia for agreeing to join Iraq in shouldering the largest production cuts. The sacrifices made by these two countries were essential
However Iraq is concerned with that OPEC will have trouble when it comes to the accountability of this deal. Non-OPEC nations are expected to cut oil prices by 600,000 barrels per day. While the inclusion of Non-OPEC nations in the recent deal is necessary to sufficiently raise the price of oil, nations involved in this deal must actually cut oil production as promised in order for the plan to prove effective.
This plan is wildly successful in doing what it was meant to do, which is raise the price of oil. Be that as it may raising the price of oil to above $50 a barrel is not in the best interests of OIC members. Right now the price of oil is artificially raised in response to the recent OPEC deal, when the deal is put into effect this January, the price of oil cannot continue to rise. Competition is a major part of the global economy, and Western shale oil is becoming increasingly cheap. In order to preserve Islamic economic assets, it is essential that skyrocketing oil prices are kept in check.