Iraq denies ‘baseless’ reports about OPEC+ cuts

Iraq has formally denied “baseless” reports that it was seeking to opt out of some of the terms of the OPEC+ agreement to limit oil supplies. (File/AFP)
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Updated 02 September 2020

Iraq denies ‘baseless’ reports about OPEC+ cuts

  • A spokesman said the reports, based on quotes attributed to Oil Minister Ihsan Abdul Jabbar, were false
  • Iraq remains fully committed to the April OPEC+ Declaration of Cooperation, and the compensation mechanism agreed to in June,” the spokesman said

DUBAI: Iraq has formally denied “baseless” reports that it was seeking to opt out of some of the terms of the OPEC+ agreement to limit oil supplies.
In an official statement from the country’s Oil Ministry, a spokesman said the reports, based on quotes attributed to Oil Minister Ihsan Abdul Jabbar, were false.
“The Ministry of Oil would like to categorically deny this baseless statement, and affirm that, to the contrary, Iraq remains fully committed to the April OPEC+ Declaration of Cooperation, and the compensation mechanism agreed to in June, and will continue to work with all of the other signatories in our collective efforts to enhance the stability of global petroleum markets,” the spokesman said.
“Furthermore, Iraq’s conformity has exceeded 100 percent in August, and will continue to perform at this elevated level, while compensating in August and September for the previous overproduction of 850,000 barrels per day, in accordance with the OPEC+ agreement.”
Iraq, along with some other countries that have failed to meet agreed output limits, has agreed to deeper cuts in coming months to compensate.
“If the full compensation volumes cannot be made by the end of September, Iraq will request the Joint Ministerial Monitoring Committee (JMMC) to seek an expedited decision from the OPEC+ countries, immediately after the committee’s meeting on Sept. 17, for an extension of the compensation period to the end of November,” the spokesman said.
The JMMC — the ministerial-level body that meets monthly to monitor compliance with the OPEC+ agreement that is credited with rebalancing global oil markets — meets on Sept. 17 to discuss compliance.
Brent crude, the global benchmark, fell back to $44.25 yesterday.


India’s Reliance to push on with retail deal in battle with Amazon

Updated 26 October 2020

India’s Reliance to push on with retail deal in battle with Amazon

  • The row is the latest development in a prolonged battle for dominance in India between Reliance

MUMBAI: Indian conglomerate Reliance has dismissed Amazon’s push to delay its acquisition of domestic retail giant Future Group, despite an arbitration panel suspending the deal following objections by the US online titan.
The row is the latest development in a prolonged battle for dominance in India between Reliance, owned by Asia’s richest man Mukesh Ambani, and Amazon, whose founder Jeff Bezos is the world’s wealthiest person.
Amazon, which owned a stake in one of Future Group’s firms that reportedly included an option to buy into the flagship company, claims that the $3.4-billion Reliance deal, announced in August, amounted to a breach of contract.
After an arbitration panel ordered the deal to be put on hold following Amazon’s request, Reliance said late Sunday that it would nevertheless “enforce its rights and complete the transaction in terms of the scheme and agreement with Future group without any delay.”
Reliance’s retail subsidiary RRVL said in a statement that it had followed “proper legal advice” before agreeing to buy Future Group, adding that the deal was “fully enforceable under Indian Law.”
Reliance, Amazon and Walmart-backed Flipkart have been locked in a frenzied contest for a share of India’s lucrative online market.
The acquisition of Future Group, which owns some of India’s best-known supermarket brands such as Big Bazaar, would strengthen Reliance’s presence in the hugely competitive e-commerce sector.
The arbitration panel has 90 days to give a final verdict on the Reliance-Future deal.