Oil rises 1% on settlement amid fears of supply shortages

[yota691]

Oil price stability amid mixed signals on supplies

10:33 - 28/08/2018

 

 

 

 

Follow - Mawazine News

Oil prices held steady on Tuesday, curbed by a gradual increase in OPEC supplies while receiving support from potential risks to the production of others such as Venezuela, Africa and Iran.

Brent crude futures were $ 76.21 a barrel by 0542 GMT, little changed from the previous close.

US WTI futures fell 4 cents to $ 68.83 a barrel.

The OPEC oil watchdog said oil producers involved in the supply cut cut production in July by 9 percent over what they pledged.

[yota691]

Economy date: 2018 Aug / in August 27 - GMT 13:55

 

OPEC's annual revenue is $ 567 billion

 

The revenues of the Organization of the Petroleum Exporting Countries (OPEC) from oil exports last year (2017) rose by 28.6 percent compared to the previous year (2016) to reach 567 billion dollars.

According to the data of the American Energy Information Administration (EIA), the average price of Brent oil rose 43.74 dollars per barrel in 2016, while the price per barrel was 54.15 in 2017.

In the same period, the price of WTI rose from $ 43.33 to $ 50.79 a barrel.

Oil revenues for the OPEC OPEC stood at $ 567 billion in 2016, the data showed.

The revenue rose by 28.6 percent in 2017 to $ 567 billion, the data added.

 

[Butifldrm]

 joint venture between Sumo and China's Shenhua to support oil sales

 

Headquarters of the oil marketing company "Sumo"

  

 energy

 

Economy News Baghdad

The oil marketing company (SOMO) is in the process of concluding a deal with China's state-run Shenhua Oil to support sales of Iraq, an OPEC member, from crude oil to China, the world's largest crude importer, four well-informed sources said.

Iraq is OPEC's second largest oil producer. The move will boost Iraq's position in Asia, the world's largest and fastest-growing oil region, which already buys 60 percent of its exports at around 3.8 million bpd.

"Shenhua helped Iraq penetrate the Chinese market and generate more revenue," a senior source familiar with the talks told Reuters, adding that a proposed joint venture could be completed in October or November.

Another source said the deal was awaiting approval from the regulatory authorities. and he did not mention any further details.

The location of the joint venture remains unclear, but two informed sources said the coastal city of Tianjin, near Beijing, is being discussed, and Singapore is also among the options.

The four sources asked not to be identified because they were not authorized to discuss commercial issues with the media.

China is under pressure to cut its oil purchases from Iran, OPEC's third-biggest crude producer, with the United States re-imposing sanctions on Tehran and threatening to cut Iran's oil exports to zero.

Amidst the trade dispute between Washington and Beijing, it is also unclear whether Chinese importers will be able to continue importing US crude.

The Sumo-Shenhua deal will also allow China another option for oil, with the risks of US crude flows.

Shenhua's relationship with Sumo dates back to the 1990s, when Norinco was among the first Chinese companies to be active in oil and gas exploration in Iraq.

Last year, Shenhua won a fixed-term contract to supply diesel to Somo for the first time, and recently also participated in a deal to develop the East Baghdad oil field.

Shenhua has been marketing Iraq's main crude oil, Basra's light crude, to Sumo since the beginning of 2018, and has also sold quantities to Taiwan, according to an independent Singapore trade source.

Shenhua, China's smallest state-run oil and gas company, expanded its operations in oil sales to independent Chinese refiners, which have been approved to import crude since 2015 and now account for about 20 percent of China's total imports.

Shenhua's sales of these independent companies reached a record 6.5 million tonnes last year, or 131,000 bpd, equivalent to about 7 percent of total purchases, according to the oil sector.

Sinopec, the major Chinese oil exporter, Sinok and PetroChina, are regular customers of Iraqi oil under long-term supply agreements with Sumo, or under service contracts for oilfields.

Views 285   Date Added 28/08/2018

http://economy-news.net/content.php?id=13399

[10 YEARS LATER]

Man ! That’s a whole lot of Space Bucks.

[Pitcher]

No kidding. That is a lot of money going into the hands of some questionable people.  

[ChuckFinley]

.For sure.

[Pitcher]

Oil Prices Head Lower On Bearish API Report

 

Aug 28, 2018,  

 

The American Petroleum Institute (API) reported a surprise oil inventory build of 38,000 barrels of United States crude oil inventories for the week ending August 25, compared to analyst expectations that this week would see a draw in crude oil inventories of 522,000 barrels.

Last week, the American Petroleum Institute (API) reported a surprise draw of 5.17 million barrels of crude oil.

The API also reported a build in gasoline inventories for week ending August 25 in the amount of 21,000 barrels. Analysts predicted a much larger build of 370,000 barrels.

 

Oil prices were trading down in mid-afternoon trading prior to the release of the API data on inventories. At 2:07pm EDT, WTI was trading down 0.62% (-$0.43) at $68.44 per barrel, with Brent crude trading down 0.31% (-$0.24) at $76.26 per barrel, on news late yesterday from OPEC that it had eased oil production cuts in July, complying with the production cut deal at just 109% in July after a strong 120% in June and 147% in May, and then wavering as news came in that the United States and Mexico had reached a tentative deal to redraw the trade deal between the two nations.

While down on the day, oil prices have made significant gains for the week, reaching multi-week highs.

US crude oil production as estimated by the Energy Information Administration once again reached 11.0 million bpd for the week ending August 17, after dipping slightly to 10.8 million bpd earlier in August.

Distillate inventories were up this week—by 982,000 barrels, compared to an expected build of 1.592 million barrels. Inventories at the Cushing, Oklahoma site increased this week by 130,000 barrels.

The U.S. Energy Information Administration report on crude oil inventories is due to be released on Wednesday at 10:30a.m. EDT.

By 4:42pm EDT, WTI was trading at $68.67 and Brent was trading at $76.40.

 

https://oilprice.com/Latest-Energy-News/World-News/Oil-Prices-Head-Lower-On-Bearish-API-Report.html

[yota691]

Oil prices fall as US supply rises

10:59 - 29/08/2018

 

 

 

Mawazine News 
Oil prices fell on Wednesday on news of an increase in US oil inventories, but the shrinking of Iran's exports ahead of US sanctions prevented further decline in the market. 
Brent crude futures were $ 75.90 a barrel by 0611 GMT, down five cents from the previous settlement. 
US WTI futures fell 4 cents to $ 68.49 a barrel. 
In the United States, the US Petroleum Institute said on Tuesday crude oil inventories rose slightly by 38 thousand barrels to 405.7 million barrels in the week ending August 24.
Despite the increase in US stockpiles, traders said crude prices had received some good support from Washington's imposition of sanctions on Tehran that would begin targeting the oil sector from November.

[yota691]

Hype for the Greed 

 

International Energy: Oil markets will see a scarcity of supply at the end of this year

 

14:53

Last updated

The time now is 02:59 PM

84

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Follow - up / Tomorrow Press: 

predicted the International Energy Agency director Fatih Birol, on Wednesday, to see world oil markets , the scarcity of supply by the end of this year. 

"Global oil markets may be in short supply by the end of this year because of strong demand and fog over supplies in some crude-producing countries," Perol said, quoting Reuters.

"There is certainly some concern that the oil markets may be in short supply near the end of this year and then the major importing countries such as India and others should be ready," he said. 

He noted that oil markets may be scarce due to "very strong growth in demand, and there is a major problem is that Venezuela's production shrinks." 

Birol said Venezuelan production had halved in the past two years, adding that there was "production fragility" also in countries in the Middle East. 

On Monday, Birol said Venezuelan oil production was expected to see further decline after halving in recent years. 

This comes as the United States plans to re-impose a ban on Iran's oil sector in November for what it called "zeroing" Iran's oil exports.

[Pitcher]

Iraq says it's ready to boost oil exports once OPEC gives OK

 

• 

Photo: Nabil Al-Jurani, Associated Press

 

In this Dec. 13, 2009, file photo, oil personnel work at the Rumaila oil refinery, near the city of Basra, Iraq. 

 

Iraq sees a need to increase crude exports and says it’s ready to ship more as soon as OPEC agrees how members will share a collective supply boost, according to the acting director-general of the state-run Oil Marketing Co.

Exports will be close to 3.595 million barrels a day this month, Alaa Al-Yasiri said Wednesday in an interview in Baghdad. That would be a record, he said, up from 3.54 million barrels a day in July.

The Organization of Petroleum Exporting Countries and allies agreed two months ago to increase oil production, with Saudi Arabia and Russia saying about 1 million barrels a day will be added to the market. But they didn’t detail how the production increase would be split between OPEC and non-OPEC nations. A committee of OPEC and allies is scheduled to meet in Algeria next month to discuss allocations.

NATGAS: Three regions account for half of U.S. natural gas production

“If decisions are made that the market is in need of quantities -- and our conviction as marketer is that the market is in need of quantities -- then Iraq will have the ability to raise,” Al-Yasiri said. Saudi Arabia and Russia have recently increased crude suppliesbut it hasn’t affected the market because customers needed the extra barrels, he said.

Shell’s Exit

Analysts have been uncertain about Iraq’s ability to raise production quickly, amid investment constraints and hold-ups that have seen Royal Dutch Shell Plc exit one of the country’s biggest oil projects.

While the International Energy Agency estimates that Iraq sits on about 240,000 barrels a day of unused capacity, much of this is offline because of a political dispute between the central government in Baghdad and Kurds in the north, and restarting it would require some kind of compromise.

 

An export increase from Iraq could have an impact on relations with its neighbor and fellow OPEC member Iran.

SANCTIONS: Iran oil minister: French oil giant Total pulls out of Iran

The Islamic Republic is seeing customers abandon its crude in the face of renewed U.S. sanctions, and analysts consider Iraqi supplies as a suitable replacement because of its similar characteristics. But Iran has criticized fellow producers seeking to take its market share for undermining unity among OPEC nations.

 

“SOMO doesn’t have a goal to take others’ clients,” Al-Yasiri said. Asked if Iraq will try to fill in for sales lost by Iran because of sanctions, he said: “Iraq rejects this principle. The principle of hunting opportunities. There should be a unifying decision for all the countries under the umbrella of OPEC.”

Also from the interview:

• Iraq has temporarily halted a Kirkuk oil swap with Iran because of a “problem with Iraqi customs.” Iraq had been exporting oil by truck to Iran’s refinery in Kermanshah and receiving the same amounts from Iran 
• Iraq is seeking to resume crude exports to Jordan, and has invited the energy minister in for talks. Iraq will discuss resuming the shipment of 10,000 to 15,000 barrels a day via truck. Shipments were halted in early 2014 due to security conditions in Iraq.
• The Trade Bank of Iraq is helping SOMO study the possibility of starting a hedging program on oil sales; a final decision would be up to lawmakers
• “Many bids” were received to build a pipeline from Kirkuk to Turkey, and the project is in the “stage of awarding” 
• If Baghdad were to combine Kirkuk oil exports with the Kurdish region using the existing Ceyhan pipeline, shipments would be 500,000 to 550,000 barrels a day; Kurdish region oil exports are currently 250,000 to 300,000 barrels a day

©2018 Bloomberg L.P.

https://www.bloomberg.com/news/articles/2018-08-29/iraq-says-it-s-ready-to-boost-oil-exports-once-opec-gives-ok

 

[Sk 1962]

This is good news! 

Right?

[Pitcher]

BAGHDAD (Reuters) - OPEC will discuss in December whether producers can compensate for a sudden drop in Iranian oil supply after U.S sanctions against Tehran start in November, the head of Iraq’s state-oil marketer SOMO, Alaa al-Yasiri, told Reuters on Wednesday. 

 

Yasiri said a sudden drop in Iran oil exports will have a negative impact on prices and market fundamentals. “A sudden drop in Iranian crude shipments from the market will cause big shortages and a negative impact on oil prices,” he said, referring to a possible increase in prices. “It’s very difficult to predict what’s going to happen in next OPEC meeting but producers must find ways to make up for Iranian crude that the market will lose.” “The major issue during next OPEC meeting will be are producers really ready to pump more oil to compensate Iran’s share,” he added. 

 

Iraq has resumed crude shipments to Iran from its Kirkuk oil fields following a few days stoppage due to logistical issues, he said, adding that so far Iraq had only shipped 500,000 barrels and hopes to ship a total of 1 million before the November U.S. sanctions against Iran kick in. SOMO is studying a request from Jordan to resume crude supplies of 10,000 to 15,000 barrels per day via trucks, Yasiri said, and the Jordanian energy minister is expected to visit Baghdad to finalise the deal. Iraq’s August crude oil exports are nearing 3.595 million barrels per day, the SOMO chief said.

 

https://uk.reuters.com/article/uk-iraq-oil/opec-to-discuss-compensating-for-iranian-supply-drop-after-u-s-sanctions-iraqi-official-idUKKCN1LE2AQ?rpc=401&

[ChuckFinley]

Wolfs surrounding a dying country. 

[jg1]

But only if the corruption could stop.

I know that is asking for too much especially when they're is so much money missing and very little prosecution's. 

[SupraRacer]

Production: good.  Export: questionable.

 

SR

[yota691]

President of the Sumo Iraq: OPEC will discuss the compensation of a shortage of Iranian oil supplies after the sanctions

09:46 - 29/08/2018

 

 

 

BAGHDAD (Reuters  
) - OPEC will discuss in December whether producers could compensate for a sudden drop in Iran's oil supplies after US sanctions on Tehran came into force in November, Alawasi said. 
"A sudden drop in Iran's crude exports will have a negative impact on prices and fundamentals in the market," Yasiri said. 
He said that Iraq had resumed shipments of crude from Kirkuk oil fields to Iran, after a few days of suspension due to logistical issues, adding that Iraq has so far shipped only 500,000 barrels, and hopes to ship a total of one million barrels before the sanctions came into effect in November.
The Ministry of Oil announced on Wednesday the rise in total oil exports and revenues for the month of July compared to last June, according to final statistics issued by the Iraqi Oil Marketing Company (SOMO). 
A spokesman for the Ministry of Oil Assem Jihad said in a statement received by "Mawazine News", a copy of it, "The total quantities exported crude oil for the month of July from the oil fields in central and southern Iraq amounted to (109) million and (857) thousand and (705) Barrels, with revenues amounted to (7) billion and (532) million and (500) thousand dollars, while not recorded statistics exports from the fields of Kirkuk. " 
Ended 
 m h n 

[Butifldrm]

Iraq Itching To Boost Oil Exports, Seize Iranian Market Share

 

 

By Julianne Geiger - Aug 30, 2018, 3:00 AM CDT

 

 

Iraq is waiting in the wings, ready to increase its crude oil exports in anticipation of slipping Iranian oil exports waiting only on the go-ahead from OPEC, acting director-general of Iraq’s state-run Oil Marketing Co. (SOMO), Alaa al-Yasiri, said on Wednesday during an interview with Reuters.

OPEC’s Joint Ministerial Monitoring Committee is expected to discuss an increase in oil production during the next meeting, which is now expected to take place on September 11, after it cancelled its Monday conference call, according to S&P Global Platts. There is also another OPEC meeting scheduled for September 23. OPEC’s Joint Technical Committee did hold a conference call on Monday.

The Ministerial Monitoring Committee’s production plans will likely include a plan for how to divvy up the increased production by country, and Iraq wants to make sure it is included in those plans.

Iran’s crude oil and condensate’s exports have tapered off to 1.68 million barrels per day from August 1 to August 16, which is 600,000 barrels per day off the July average of 2.32 million barrels per day, according to Platts cFlow software.

This shortfall, al-Yasiri, contends, will have a negative impact on oil prices.

And Iraq is not without customers. For starters, SOMO currently has on its desk for review a request from neighboring Jordan for truckloads of oil to the tune of 10,000-15,000 barrels per day, Yasiri said, cited by Reuters. And Iraq’s oil shipments from Kirkuk to Iran has also resumed after a few days off due to logistical issues, and hopes to ship a total of 1 million barrels to Iran before sanctions kick in in November.

Iraq’s oil production has been increasing according to OPEC’s Monthly Oil Market Report, averaging 4.476 million bpd in the first quarter of 2018, increasing to 4.556 million bpd for July, the last month for which there is data.  But OPEC observed weak crude oil demand in Iraq during the first six months of 2018, as natural gas was used to some extent in place of fuel.

By Julianne Geiger for Oilprice.com

https://oilprice.com/Latest-Energy-News/World-News/Iraq-Itching-To-Boost-Oil-Exports-Seize-Iranian-Market-Share.html

[yota691]

Oil prices rise, Brent approaching $ 78

 

Thursday 30 August

 

 

 

 

BAGHDAD ( Reuters) - Oil prices rose on Thursday as US inventories fell and Iran's sanctions approached, with Brent approaching $ 78.  At 2 p.m. Baghdad, Brent crude for the week was $ 77.92 a barrel, up 46 cents, or 0.58 percent, from its previous close.  It rose US crude West Texas Intermediate 37 cents , or 0.53 percent registered to $ 69.88 a barrel.  Brent crude has risen more than 9 percent since August 15 and hit a 11-month high of $ 77.48 on Thursday. West Texas Intermediate rose more than 7 percent over the same period.   "Oil prices rose as a result of an unexpected drop in US stocks, a second straight decline for the second consecutive week, and demand for gasoline hit a record high," said William Olochlin, analyst at Refin Securities in Australia.  "The impending sanctions on Iran are beginning to affect oil supplies, which will raise crude prices," said Alfonso Esparaza, an analyst at Oanda Futures Brokerage.

[yota691]

A poll - the risk of oil demand due to trade wars - may erode the Iranian influence on prices

 

Arab and international Economy News _ Baghdad Oil market analysts cut their 2018 forecasts for the first time in about a year in August amid growing concerns about the impact of growing trade tensions on demand for crude, despite a shrinking supply, especially from Iran, a Reuters poll showed on Friday. , Will curb losses. A poll of 45 economists and analysts predicted that the price of global benchmark crude would reach an average of $ 72.71 a barrel in 2018, down 16 cents from $ 72.87 in the survey forecast last month. This is an average of $ 71.96 since the beginning of this year. The price is expected to reach $ 72.58 a barrel on average in 2019. West Texas Intermediate crude futures are expected to post $ 67.13 per barrel on average in 2018, compared to $ 67.32 a barrel on average last month and $ 66.40 a barrel on average. Views 15   Date Added 31/08/2018

[yota691]

OPEC source: Saudi oil production rose in August to 10.424 million b / d

 

Arab and international Economy News _ Baghdad Saudi Arabia's crude oil production in August rose to 10.424 million bpd compared to 10.288 million bpd in July, a source from the Organization of the Petroleum Exporting Countries (OPEC) said on Friday. The source said that the supply in August amounted to 10.467 million barrels per day compared to 10.380 million barrels per day in July. The volume of supply in the market may vary locally and export from the volume of production based on the movement of crude to and from the storage sites. Views 2   Date Added 31/08/2018

[ChuckFinley]

Thanks Yota, countries are back filling already. SA is on board with us to take down Iran. 

[yota691]

Exports of southern Iraq raise OPEC production to record levels

 

energy Economy News _ Baghdad The Organization of the Petroleum Exporting Countries (OPEC) increased its oil production in August to its highest level in 2018, as Libya's output recovered and southern Iraq's exports reached a record level, although the shrinking of Iranian shipments due to US sanctions curbed the increase. A Reuters survey showed on Friday that the Organization's 15 member states pumped 32.79 million bpd in August, up 220,000 bpd compared with the revised July figure. OPEC agreed with allies in June to increase production, while US President Donald Trump urged producers to compensate for losses caused by renewed sanctions on Iran and cut prices this year to $ 80 a barrel for the first time since 2014. In June, OPEC, Russia and other non-OPEC countries agreed to return to compliance with oil production cuts that began in January 2017 at 100 per cent after continuing below-target production in Venezuela and other countries, More than 160 per cent. However, OPEC's commitment to production cuts rose to 120 per cent in August from 117 per cent in July, according to the survey, as additional supplies from Saudi Arabia and elsewhere did not dispel the impact of losses in Iran and the decline in production in Venezuela And Angola in full. The second largest increase came from Iraq, with exports reaching a record high, making Iraq the least-committed member of the Opec deal in August, according to the survey. The survey aims to track supplies that are pumped into the market and is based on offshore data from offshore sources, Thomson Reuters data and information provided by sources in oil companies, OPEC and consulting firms.  Views 25   Date Added 09/01/2018

[yota691]

 

"Sumo" confirms its readiness to increase Iraqi oil exports

 

14:48

Last updated

The time now is 02:52 PM

135

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The head of the Iraqi Oil Marketing Company (SOMO) Alaa al-Yasiri said on Saturday that Iraq is ready to increase its oil exports if approved by OPEC, stressing that exports will rise during the month.

"Iraq is ready to ship more crude oil once OPEC agrees on how members share," Yasiri told Bloomberg. 

He added that "Iraq will have the ability to pump quantities of oil if OPEC took a decision and that the market needs oil quantities." 

The Organization of the Petroleum Exporting Countries (OPEC) and allies agreed two months ago to increase oil production with Saudi Arabia and Russia, which will add about one million barrels per day to the market, but did not disclose how the output will be divided between OPEC and non-OPEC members, OPEC and its allies in Algeria this month to discuss allocations.

[Pitcher]

OPEC oil production has risen this month to a 2018 high as Libyan production recovered and Iraq’s southern exports hit a record, a Reuters survey found, although a cut in Iranian shipments due to US sanctions limited the increase.

The 15-member Organization of Petroleum Exporting Countries has pumped 32.79 million barrels per day in August, the survey on Friday found, up 220,000 bpd from July’s revised level and the highest this year. OPEC and allies agreed in June to boost supply to dampen prices, which this year hit $80 a barrel for the first time since 2014.

In June, OPEC, Russia and other non-members agreed to return to 100% compliance with oil output cuts that began in January 2017, after months of underproduction in Venezuela and elsewhere pushed adherence above 160%. Top exporter Saudi Arabia, which promised a “measurable” boost in its own output, said the decision would translate into an output rise of about 1 million bpd.

Even so, OPEC’s adherence with supply targets has actually risen to 120% in August from a revised 117% in July, the survey found, because extra barrels from Saudi and others did not fully offset losses in Iran and declining output in Venezuela and Angola.

The biggest increase in supplies this month has come from Libya, whose output remains volatile due to unrest.

Production at the Sharara Oilfield, the country’s largest, increased after the restart of a control station that had been closed due to the kidnapping of two workers, and other fields also pumped more. The second-largest increase came from Iraq, where southern exports reached a record high. Shipments also increased from the north, leaving Iraq as OPEC’s least compliant member in August, according to the survey.

Saudi Arabia, after a big increase in June output, apparently backtracked on plans for a further boost in July and cut supply last month to 10.40 million bpd. Supply has edged up to 10.48 million bpd in August, the survey found, still lower than June’s 10.60 million bpd.

Supply in Nigeria, which like Libya is exempt from the OPEC supply cut pact because its output is often curbed by unplanned outages due to unrest and conflict, rose by 30,000 bpd. Kuwait and the UAE, after raising output in July following the OPEC deal, kept supply steady in August, the survey found.

 

https://financialtribune.com/articles/energy/92723/opec-production-hits-2018-high

 

[Pitcher]

Iraq oil exports hit 2018 peak in August

 

 

Protesters demonstrate at oil fields in al-Qurnah, 100 kilometres (60 miles) north of Basra, Iraq, on July 14, 2018

Iraq's oil exports for August hit their highest monthly figure this year, the oil ministry said Saturday, with nearly 112 million barrels of crude bringing $7.7 billion to the war-torn country's ailing economy.

"In August, exports of crude reached 111.6 million barrels and revenues were $7.7 billion," on an average price of $69.59 per barrel, it said in a statement.

In August last year Iraq earned $4.6 billion from the sale of 99.7 million barrels of crude oil.

Iraq's sole source of foreign currency, oil revenues have pumped more than $60 billion into state coffers since January.

Baghdad's economy has been hit hard by the war against the Islamic State jihadist group which had seized a third of Iraq's territory in 2014 before being ousted in a vast government offensive last year.

Iraq suffers from persistent corruption and many Iraqis complain that the country's oil wealth is unfairly distributed.

This summer saw weeks of demonstrations in the oil-rich but marginalised south, demanding an end to power shortages and graft.

Iraq has the second-highest output of any member of the OPEC oil producers cartel, at some 4.5 million barrels per day.

Major oil producers including OPEC members and Russia agreed in June to raise crude output.

 

http://www.dailymail.co.uk/wires/afp/article-6121885/Iraq-oil-exports-hit-2018-peak-August.html