Oil prices slip on record Iraq output

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Oil prices slip on record Iraq output

BY HIMANSHU OJHA

LONDON Mon Jan 19, 2015 5:21am EST

 

 

A man fills up his car at a petrol station in Rome January 6, 2015.

CREDIT: REUTERS/MAX ROSSI

 

(Reuters) - Brent crude oil prices fell below $50 a barrel on Monday after Iraq announced record oil production and the global economic outlook darkened.

Iraqi Oil Minister Adel Abdel Mehdi said on Sunday Iraq pumped 4 million barrels per day (bpd) of oil in December, its highest ever thanks to higher output from its southern terminals and a surge in supply from the north.

Abdel Mehdi said Iraq planned to a big increase in exports from the northern city of Kirkuk and the Kurdistan region, which would increase production to 600,000 bpd from April.

Brent crude traded around $49.40 a barrel by 1015 GMT, down 77 cents. U.S. crude was trading down 74 cents at $47.95 a barrel.

"There's still more supply than demand and that's a situation that will not change in just a few weeks," said Hans van Cleef, energy economist at ABN Amro.

Oil prices have dropped by more than half since last June as output around the world has soared while demand growth has slowed. Although the International Energy Agency (IEA) said last week a reversal in the trend was possible this year, it added that prices may fall further before rising.

Analysts said prices found some support from a drop in U.S. drilling rigs, signifying a likely fall in production in the future. But they said there was not much room for gains.

"Some positive data points helped to stabilize oil for now ... Upbeat IEA comments and a falling U.S. rig count were the latest positive news. While the news was able to halt oil's price decline, it (is) not enough to turn prices bullish," Morgan Stanley said in a note to clients on Monday.

China, the world's biggest energy consumer, is expected on Tuesday to report its weakest economic growth for more than two decades. Data from China's National Bureau of Statistics showed on Sunday house prices fell for a fourth straight month.

A meeting of the European Central Bank on Thursday will likely see the launch of a government bond-buying campaign, pointing to further euro falls against the dollar as well as to downward pressure on oil prices.

"It is not hard to find evidence of increasing concerns around global economic weakness. Yield curves across the world have been flattening (longer term yields falling relative to short ones), a dynamic typically associated with expectations of weakening economic conditions," Timera Energy said on Monday.

Iraq produces record 4 million barrels per day of crude in December

BAGHDAD - Reuters

 

 

 

Turkish Energy Minister Taner Yıldız, left, speaks as Iraqi Foreign Minister Ibrahim al-Jaafari listens during a news conference in Baghdad, Iraq, Sunday, Jan. 18. AP Photo

Iraq produced a record of around 4 million barrels per day (bpd) of crude oil in December, Oil Minister Adel Abdel Mehdi announced on Jan. 18.

“It is the first time Iraq has achieved this,” Abdel Mehdi told a press conference alongside Turkish Energy Minister Taner Yıldız.

Abdel Mehdi also revealed plans to export 375,000 bpd for the first three months of 2015 from around the northern city of Kirkuk and the Kurdistan region. He said those fields would increase production to 600,000 bpd as of April.

The previous monthly record for Iraqi production was 3.56 million bpd in 1979, according to an official from Iraq’s State Oil Marketing Organization.

Abdel Mehdi told reporters that Iraq had set the level of exports for Iraq’s northern and Kurdish oilfields for the first three months of 2015 after the meeting with Yıldız.

“We have agreed to keep the level of exports at 375,000 bpd for the first three months of the year, and as of April, we will increase exports to 600,000 bpd,” Abdel Mehdi said.

The oil from Iraq’s north is exported via a pipeline network from the Kurdistan region to the Turkish Mediterranean port of Ceyhan.

The arrangement is the result of an interim deal reached between Baghdad and Iraqi Kurdistan in early December after years of acrimony between the two sides over oil rights.

Under the deal, the sides agreed to ship 300,000 bpd of oil from Kirkuk and 250,000 bpd from Kurdistan via the Kurds’ pipeline network.

Baghdad and the Kurdish region were prompted to set aside their differences by the jihadist group Islamic State’s seizure of territory across large sections of northern Iraq.

January/18/2015

Oil Minister: Iraq's oil production will reach four million barrels per day

 

Oil Minister Adel Abdul Mahdi

 

 

Author: mu Editor: br reporter: mst

Number of Views: 282

 

01/19/2015 10:46

 

Tomorrow Press / Baghdad: Oil Minister Adel Abdul Mahdi, on Monday that Iraq's oil production will reach four million barrels per day, to compensate for the drop in oil prices in world markets.

Said Abdul-Mahdi, in a joint press conference with his Turkish counterpart Taner Yildiz, on Sunday evening, attended by "tomorrow Press" that, "Iraq has made great efforts and invested large sums of money to get to the rate of four million barrels of production," adding that "to increase oil production volume will help offset the decline in oil prices, especially since it is expected that the size of Iraq's exports of up to 3.3 million barrels. "

"The Oil Ministry had proposed building a public budget based on $ 60 per barrel, and that a good estimate based on market conditions before they reach prices to bottom."

For his part, Minister of Oil Turkey, Taner Yildiz during the conference that "there is a new agreement to provide electrical power to the province of Basra over the buoy," adding that "Iraq is ranked second in the Turkish exports and oil Kirkuk passing through belongs to the Iraqi people Collect Ceyhan line."

And experiencing many countries in the world economic crisis, as a result of falling oil prices, the global stock market, prompting Prime Minister Haider al-Abadi, to call the House of Representatives, to reduce the budget again, and not to bring it back to the government, especially after the decline last puff on oil prices, which reached according Global stock to $ 48 per barrel, after it was $ 110.

Iraq relies, by 85%, on oil as well as Iran and Russia Almtdharran elder with Iraq at a lower price, as a result, the Iraqi government was forced to announce, an austere operations, generally in the country in an attempt to fill the budget deficit, as well as the government announced Iraq, reducing the Cabinet salaries 50%.

The Council of Ministers approved in its regular, in 23 of the current December, the budget bill and sent it to Parliament for formal approval, pointing out that the budget approved B123. -

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Oil Minister: Iraq will reach production to four million barrels per day to compensate for the drop in prices losses

History of edits:: 19/1/2015 twelve thirteen • 38 visits readable

{Baghdad: Euphrates News} Oil Minister Adel Abdul-Mahdi said that Iraq's oil output will reach "historic figure", and as pointed out that production will reach four million barrels per day, he stressed that "this increase will help offset the decline in oil prices. 

Said Abdul-Mahdi said in a statement received by the agency {Euphrates News} Monday, "The" Iraq's oil exports last month approached the three million barrels per day, including the source through Sumo from the port of Ceyhan, "adding that" production will reach four million barrels daily during the current year after the last with the Kurdistan agreement, "expected" to see the second half or the last of this year a surge in oil prices, "and expressed" his belief not to return prices to what it was during the past years. " He added that "This is a historic figure occurs for the first time, "stressing that" Iraq has made ​​great efforts and invested large sums of money to get to this number. " He said the oil minister to "increase oil production volume will help offset the decline in oil prices," expected to "Iraq's export volume to be at a rate of 3.3 million barrels . " and that "the oil ministry had proposed building a public budget based on $ 60 per barrel," noting that "it was a good estimate based on market conditions before they reach the prices to the bottom." He pointed out Abdul-Mahdi, that "the price may not go back to what it was during the past years, "pointing at the same time that" oil prices will begin to rise gradually after the second half or the last of the year is a slow but growing rapidly. " It is noteworthy that world oil prices have seen a significant decrease is the first of its kind in five years, causing damage to many countries, including Alarac.anthy