Iraqi Finance Minister's Visit To Riyadh Important To Stabilize Oil Market- Senior Adviser

The visit of Iraqi Finance Minister Ali Allawi to Saudi Arabia is important for ensuring the stability of oil prices in the world market, Mazhar Muhammad Salih, the adviser of Iraq's prime minister for financial affairs, told Sputnik on Friday

BAGHDAD (UrduPoint News / Sputnik - 22nd May, 2020) The visit of Iraqi Finance Minister Ali Allawi to Saudi Arabia is important for ensuring the stability of oil prices in the world market, Mazhar Muhammad Salih, the adviser of Iraq's prime minister for financial affairs, told Sputnik on Friday.

On Thursday, the finance minister left Iraq for a visit to Saudi Arabia at the instruction of Prime Minister Mustafa Al-Kadhimi to discuss bilateral relations and the economic situation in the region.

"Saudi Arabia and Iraq are the two main players in OPEC [the Organization of the Petroleum Exporting Countries], they provide about half of the total OPEC oil production ... This visit is important to ensure oil stability," Salih said.

The prime minister's adviser added that to reach stability in the region, cooperation, which is the purpose of the visit, was necessary, and Saudi Arabia was open for relations with Iraq.

According to the official, the visit provides an opportunity for Iraq "to demonstrate its role in the region, creating [an opportunity for] investment and ensuring stability during this difficult time."

Oil prices fell dramatically earlier in the year due to the OPEC+ countries' failure to reach a deal on cutting oil production and restriction measures implemented by countries in a bid to curb the coronavirus pandemic. However, the group members managed to achieve an agreement in mid-April that aims to stabilize the oil market. The deal envisages a reduction in oil output by the OPEC+ group by 9.7 million barrels per day for two months starting on May 1, and possibly up to 15 million barrels daily with the G20 nations taken into account.