Abdalla El-Badri told media that the decline since June of 2014 is not warranted by international supply and demand.
Producers, who do not belong to OPEC, must lead the reduction of output because of the glut that shoved crude lower than $50 per barrel. Iraq, one of the principal members of OPEC, said it has to bolster output as compensation for profits affected by the price collapse. Meanwhile, Brent crude was down by 16 cents (0.3 percent) to $48.87 for every barrel on the ICE Futures European exchange. On the other hand, West Texas Intermediate gave up more than 30 cents to $47.45.
The OPEC secretary general insisted that non-member countries with prices of $100 per barrel to keep up output must withdraw production which has expanded during the last 10 years while OPEC prices remained steady.
Iraq has already lost close to 50 percent of earnings due to this slump and needs to reinforce output.
It is necessary for the OPEC and other producers to invest in new supplies notwithstanding this price fall. Oil prices can move above $100 per barrel devoid of adequate spending in supplementary capability within the next five years. The crude yield of OPEC increased by around 80,000 barrels each day last December (2014) to 30.48 million. More oil from Iraqi fields made up for the downfall in Libyan production. This was cited in the recent market report of the International Energy Agency.
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