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OPEC members in price war

OPEC members in price war
Iraqi Oil Minister Adel Abdul Mahdi said OPEC state members are engaged in an internal price war, because they seek to preserve their share of an oversupplied market, according to the Gulf Times.
“The market’s fundamentals have changed, with an extra 3mn barrels a day of crude entering the market at a time when growth in China and India has slowed,” Abdul Mahdi said.
Crude prices have plunged more than 20% from their June peak, meeting a common definition of a bear market.
The global supplies are increasing as a shale boom boosts the U.S. production to the highest level in 30 years and demand grows at the slowest pace since 2009.
Saudi Arabia lowered the price of its main crude export grade to Asia to the lowest in almost six years on October 1, a move later matched by Iran.
Abdul Mahdi added that “Saudi Arabia last month lowered its selling price by 75¢ on average as part of this price war, Iran has done something similar and we, in Iraq, lowered our price by 60 cents.
However, OPEC’s secretary-general Abdalla El-Badri said OPEC is not engaged in a price war.
“Our countries are following the market. People are selling according to the market price,” El-Badri added.