After the last few days melt-up in WTI because “an OPEC deal is certain,” it seems Iraq is ready to spoil the party once again. Sending WTI (Jan17) tumbling from over $49 to a $47 handle, Reuters reports, Iraqi Foreign Minister Ibrahim al-Jafari told reporters, “it would not be fair for us to cut oil output.”
OPEC should allow Iraq to continue raising output with no restrictions, Foreign Minister Ibrahim al-Jafari told reporters in Budapest on Tuesday, commenting on a plan by the organization to limit supply in order to support prices.
“We think we should increase output. Iraq is in a special situation …we are at war,” he said, referring to the ongoing military campaign to defeat Islamic State.
And the reaction is a pullback in WTI’s panic bid…