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Sulaimani and the four warnings .. This is the secret of the break with "Arab" with Qatar  2017/06/05 14:12  Iraq / Baghdad  The Israeli intelligence website Depaka published a report commenting on the severing of ties between Saudi Arabia, Egypt, the UAE, Bahrain and a number of countries. The Israeli website spoke of what he described as "the secrets of the sudden Arab escalation against Doha and its extensive boycott campaign".  "The main secret lies in Qatar taking a stand with Iran and trying to abort the Riyadh agreement," he said.  The website quoted unnamed sources as saying that one of the main reasons for the tension between the Gulf states and Qatar was the visit by Foreign Minister of Qatar Mohammed bin Abdul Rahman al-Thani to Tehran a week before US President Donald Trump's visit to Saudi Arabia On 22 May.  The visit was attended by a secret meeting between Qatari Foreign Minister Qassem Suleiman, commander of the Quds Force in the Iranian Revolutionary Guards.  The "Debka" that the secret meeting included the development of plans to blow up all US efforts to form a coalition to fight Iran in the region. She pointed out that the dispute broke out in public after the end of Trump's visit, with the statements attributed to the Emir of Qatar, Tameem bin Hamad Al-Thani, in which he praised Iran's regional weight, and did not pay attention to the Qatari announcement that this information is wrong, QNA ", which indicates that they had information confirming beyond those statements. Meeting and four alarms The sources revealed that Saudi King Salman bin Abdul Aziz, UAE President Sheikh Mohammed bin Zayed Al Nahyan and Egyptian President Abdul Fattah al-Sisi held a meeting in which they agreed to send a strict warning to the Emir of Qatar.   The three leaders warned that they would impose severe sanctions on Doha if the four conditions were not met:  1. Cut off all military and intelligence relations with Iran.  2 - Abolition of all agreements between Qatar and Tehran, especially those relating to Iraq, Syria and Libya.  3. Abolish all aid and asylum procedures for members of the Muslim Brotherhood and immediately deport them from Qatar.  4. Cut Qatari ties with Hamas and prevent its officials from living in Doha.  The Hebrew site revealed that the Saudi monarch asked Sisi last week to clamp down on the head of the political bureau of Hamas, and not allow him to pass through Cairo from the Gaza Strip, to travel and he and his family in Doha.  The "Dibka" quoted intelligence sources as saying that the siege of Qatar, is only a first round only, and there are many other rounds.  "It could be a small-scale military operation against a national target, and that option remains among the cards that the boycott states may play for Doha," the sources said.  "It is also not ruled out that secret agencies in Egypt, Saudi Arabia and the UAE will succeed in engineering a new coup against Al-Thani in Qatar," she said.

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Washington urges Gulf states to deal with the dispute and to stay united

Number of readers: 653

 

 

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Washington urges Gulf states to deal with the dispute and to stay united

 

05-06-2017 11:52 AM

 

Euphrates -

 

Urged the United States and the Arab Gulf states to deal with their differences and remain united, in the wake of the decision of the Kingdom of Saudi Arabia, Bahrain, and the UAE, in addition to Egypt, the severance of diplomatic relations with Qatar. 

The US Secretary of State Rex Tillerson told a news conference this morning in response to a question about the Gulf crisis , we encourage the parties in the Gulf to sit down and discuss their problems. 

The Kingdom of Saudi Arabia, Bahrain and the UAE and Egypt, announced at dawn today and simultaneously cut ties with the State of Qatar and the withdrawal of diplomatic missions and the closure of border crossings, according to a statement published by the Saudi and Bahraini official Emirati news. 

The sudden position after nearly two weeks of penetrating the official Qatari news site, publishing fabricated statements to the Emir of Qatar, Sheikh Tamim Bin Hamad Al - Thani, where Doha issued a formal denial of her, and confirmed penetrate the agency 's website, and formed a commission of inquiry to find out the piercing.

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Good morning Yota, 

I have been watching this unfold and looks like another ME conflict being born.  Looks like they really want to stick it to Iran and now the other Arab countries are on board with the idea of wiping out, perhaps, once and for all terrorism and those that harbor terrorists. 

This will also help take the spotlight off of Iraq for a bit and let the PTB finish their job without all eyes on them ;) 

Its a shame why we all can't just get along  :confused2:

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Just days after president Trump left the region, a geopolitical earthquake is taking place in the Middle East tonight as the rift between Qatar and other members of the (likely extinct) Gulf Cooperation Council explodes with Bahrain, UAE, Saudi Arabia, and Egypt cutting all diplomatic ties with Qatar accusing it of "speading chaos," by funding terrorism and supporting Iran.

The dispute between Qatar and the Gulf's Arab countries started over a purported hack of Qatar's state-run news agency. It has spiraled since, and appears to be climaxing now... just days after President Trump left the region.

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As Al Arabiya reports, Bahrain has announced it is cutting diplomatic ties with Qatar, according to a statement carried on Bahrain News Agency.

 
 

The statement on Monday morning said Bahrain decided to sever ties with its neighbor “on the insistence of the State of Qatar to continue destabilizing the security and stability of the Kingdom of Bahrain and to intervene in its affairs”.

 

The statement also said Qatar’s incitement of the media and supporting of terrorist activities and financing groups linked to Iran were reasons behind the decision.

 

“(Qatar has) spread chaos in Bahrain in flagrant violation of all agreements and covenants and principles of international law Without regard to values, law or morals or consideration of the principles of good neighborliness or commitment to the constants of Gulf relations and the denial of all previous commitments,” the statement read.

 

Qatari citizens have 14 days to leave Bahraini territories while Qatari diplomats were given 48 hours to leave the country after being expelled. Meanwhile, Bahrain has also banned all of its citizens from visiting or residing in Qatar after the severance of ties.

Additionally, Bahrain has has closed both air and sea borders with Qatar.

Saudi Arabia then confirmed the same - cutting ties and shutting down all sea, airspace, and land crossings with Qatar as well as dissolving Qatar's role in the Saudi-led coalition fighting against Yemen. Emirates, Etihad, Saudia, Gulf Air, and Egypt Air are no longer allowed to fly to Qatar and Saudi Arabia is providinhg facilities, services to Qatari pilgrims

Egypt then followed, confirming it was cutting diplomatic ties with

Then UAE confirmed it would cut ties, shut down all sky, water, and land crossings, and expel all Qataris within 48 hours.

The Maldives also just cut diplomatic ties with Qatar.

All of this happens within 24 hours of Iran calling out 'The West' for ignoring the real sponsors of terrorism around the world and UK's Labor party leader outright name-shaming Sauid Arabia's funding of terrorism.

Qatari officials did not immediately respond to a request for comment.

As a reminder, documents obtained by Middle East Eye show strategic alliance includes pledge by Ankara to protect Gulf state from external threats...

 
 

In December 2015, Turkey announced, to the surprise of many, that it planned to establish a military base in Qatar. Behind the scenes, the agreement was about forming a major strategic alliance.

 

After a 100-year hiatus, Turkey is militarily back in the Gulf and ramping up its presence overseas. In January, Ankara announced that it would also establish a military base in Somalia.

 

Specific details about the Qatar agreement, which Turkey described as an alliance in the face of "common enemies", remain scant, but Middle East Eye has acquired copies of the agreements, as well as further details, which include a secret pledge by Ankara to protect Qatar from external threats.

Did Qatar just get scapegoated in the 'war on terror'? One thing seems clear, support for a Syrian gas pipeline will be dwindling and with it the need for a Syrian war.

Notably, this raises further doubts about OPEC's stability. As Bloomberg notes, while Middle East ructions have historically added risk premia to oil prices, discord here could theoretically put downward pressure on prices as OPEC members struggle to maintain unity and compliance on production cuts.

http://www.zerohedge.com/news/2017-06-04/saudi-arabia-egypt-uae-bahrain-cut-diplomatic-ties-block-all-borders-qatar

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With the continuation of the "oversupply" .. Oil continues to decline

economy

 Since 06/09/2017 15:58 am (Baghdad time)

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Balances News - Follow-up

Oil prices continued their downward trend on Friday, following the sharp losses recorded earlier this week, pummeled by signs wide on the continuing fuel supply glut, despite OPEC's efforts to reduce the gap between supply and demand in the market.

By 0820 GMT, the decline in the global London Brent crude 20 cents to $ 47.66 a barrel, down about 12 percent from its level at the open on May 25 when OPEC agreed with some independent producers to extend the cut production by about 1.8 million barrels per day until the end of March 2018 .

However, the global markets are still awash with oil.

Said Tamas Varga, an analyst at Ba.vi.am Oil Associates brokerage in London, "the challenge facing OPEC greater than any expected a few weeks ago."

US data showed this week, a sudden increase in commercial crude oil inventories of 3.3 million barrels to 513.2 million.

And it increased stocks of refined products also despite the beginning of the summer season when consumption rises to Aldhiroh.anthy 29/9 P

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History of edits:: 2017/6/12 20:54 • 117 times readable
Oil Minister: OPEC to consider a review of an agreement next month, and we hope to continue
{Baghdad: Euphrates News} Oil Minister Jabbar Luaibi said that the monitoring committee to cut production in OPEC, will meet next month of July, to consider the review of the agreement.
Allaibi said, in a press statement, "Rethinking the reduction of oil production agreement depends on the outcome of the monitoring committee of OPEC production cuts , " and expressed hope that " the continuation of the agreement so that it can raise the price of oil." 
He said, "There is a meeting of the Committee in the month of July, which is estimated to whether there is a need to review." 
And the participation of Russian companies in the reconstruction of Iraq, Luaibi said, "I personally see that there are large spaces in front of Russian companies to develop infrastructure in Iraq, and I hope to see Russian companies more effective and Made force in Iraq." 
He added, "We have a contract with {Lukoil} Russian exploration and works efficiently in Iraq." 
He Allaibi, there is coordination between Iraq and Russia over the issue of oil prices, noting that "we have a direct coordination with the Russian side, I have a semi - regular contact with Russian Energy Minister Alexander Novak and there is an agreement on prices." 
He said , "Russia and the desire to coordinate with OPEC and there are common interests with the organization, and there is a common vision in this area." 
The Minister of Oil, "directed during my visit to the exhibition in the city of St. Petersburg recently call for Russian companies to come to contribute to the reconstruction of Iraq and contribute to the energy sector in particular." 
It is said that, the Organization of the Petroleum Exporting Countries {OPEC}, agreed and some independent producers, during their meeting last May 25, the extension pledged to cut 1.8 million barrels of production per day until the end of the first quarter of 2018. ended
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Crude Oil Back Below USD46 As Iraq Turns On Spigot

Tue, 13th Jun 2017 14:12


WASHINGTON (Alliance News) - Crude oil futures were lower Tuesday morning, giving back a fraction of yesterday's gains, as OPEC data showed a surprise increase in production from Iraq.

It's the latest sign the cartel is struggling to achieve full cooperation with its supply quota plan that was recently extended for another nine months.

Thus far, the deal with Russia has done little to re-balance oil markets, as reflected in sub-$50 oil prices.

OPEC's output rose 1% to over 32.14 million barrels in May. Libya and Nigeria are exempt from the supply quota plan, so they along with Iraq were pumping oil at a particularly fast clip.

WTI light sweet crude oil for August was down 13 cents at USD45.94 a barrel.

US inventories data is out over the next few days. Analysts expect a drawdown following last week's surprise build in stockpiles.

http://www.lse.co.uk/AllNews.asp?code=tzkv3rxb&headline=Crude_Oil_Back_Below_USD46_As_Iraq_Turns_On_Spigot

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OPEC oil output spikes just weeks after extending production cuts

 

Ronald Zak / AP

Oil output across OPEC's 14 member countries increased by roughly 336,100 barrels per day in May after Libya, Nigeria, and Iraq increased their production, reports CNBC. The spike comes less than a month after OPEC and other exporters agreed to extend their November deal to cut oil output by 1.8 million bpd to March 2018.

Note: Libya and Nigeria are exempt from the OPEC agreement, as civil conflicts have weighed on their countries' oil supplies. Meanwhile, Iraq, which is OPEC's second-largest producer, had agreed to only produce 4.35 million bpd, but has repeatedly failed to meet its quota and continues to produce more than allotted.

Why it matters: The goal of the OPEC agreement is to help eliminate much of the glut in the oil market that has bogged down the industry for years; however, not all countries have kept their end of the bargain. In May, Saudi Arabia, Angola, Kuwait, and Qatar were the only four countries producing at or below their quotas.https://www.axios.com/opec-oil-output-spikes-just-weeks-after-extending-production-cuts-2440816063.html

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LMAO...No one really thought that there would be any production cuts, not even OPEC themselves. These countries that depend on oil to survive an looking to borrow money from anyone will not entertain the thought of actually scaling back on production. The price of oil will probably hit 40 dollars a barrel before it stabilizes....

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Economy News Baghdad:
OPEC announced on Tuesday that Iraq's production of crude oil increased by 44.4 thousand barrels last month, indicating that the demand for Iraqi oil increased significantly compared to last year.
OPEC said in its monthly report, was briefed by the "Economy News", "Iraq's oil output rose 44.4 thousand barrels per day," noting that "Iraq's output last month reached 4.424 million barrels per day." 
She added that "observed a strong demand in the first four months of the year 2017 on oil in Iraq," indicating that "all major petroleum products in Iraq recorded a double for the same quarter of the previous year growth, which was remarkably steady in crude direct use."
 
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Views 504   Date Added 06/13/2017 - 18:07   Last updated 14/06/2017 - 4:41   No. Content 7918
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Brent Crude Oil
$48.72 ▲0.43    0.88%
2017.06.13 end-of-day
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                                                           As of 19:51  13 June 2017  LINK ----   http://oil-price.net
WTI Crude Oil
$46.46 ▲0.38    0.82%
2017.06.13 end-of-day
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Commodities
2017.06.13 end-of-day » Add to your site
Crude Oil 46.46 +0.82%
Natural Gas 2.97 -1.96%
Gasoline 1.50 +0.77%
Heating Oil 1.45 +1.54%
Gold 1265.80 -0.02%
Silver 16.74 -1.05%
Copper 2.59 -0.75%
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Edited by 10 YEARS LATER
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India’s oil imports from Iraq surges; Iraq set to become new oil king

India Infoline News Service | Mumbai | June 14, 2017 17:45 IST

Amidst an intense competition among oil producers to win the coveted position in the world’s fastest growing oil consumer market, Iraq has begun to overshadow Saudi Arabia to become the oil king.

 
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Amidst an intense competition among oil producers to win the coveted position in the world’s fastest growing oil consumer market, Iraq has begun to overshadow Saudi Arabia to become the oil king.

India imports over 80% of its crude oil needs, while the International Energy Agency foresees the Indian market as the fastest growing consumer market for oil through 2040.

Meanwhile, Iraq has become the top supplier of crude to India for the third straight month in May 2017.

According to media reports, the country ships nearly 1 million barrel of crude per day. While it accounted for 23% of crude imports to India in the previous month, growing from its average of 19% imports recorded in the past four months. The Indian imports from Saudi Arabia fell one percent point to 17% for the corresponding period.   

 

http://www.indiainfoline.com/article/news-top-story/india-iraq-oil-trade-indias-oil-imports-from-iraq-surges-iraq-set-to-become-new-oil-king-117061400529_1.html

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Wednesday June 14, 2017 14:38

 

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Alsumaria News / Baghdad 
with the intensification of competition between oil producers on Asian markets, exports of Iraq in May / May , the list of suppliers of crude oil to India, for the third consecutive month, surpassing Saudi Arabia . 

Shipping data, collected by the agency "showed Bloomberg " economic Iraq reported one million barrels of crude oil to India over the past month, and formed a supply Iraq about 23% of the total purchases of India for that month, while the Kingdom 's share fell to 17%.

 
 

The total of Indian imports of crude oil in May / May , around 4.35 million barrels per day. India imports, which has the size of its economy two trillion dollars, more than 80% of its needs of raw materials. Expects the International Energy Agency that India is the fastest growing consumer of raw materials by the year 2040 

, said R.. Ramachandran Chairman of Refineries Company " Bharat Petroleum", the second - largest state - run refinery in India, said that "Saudi Arabia were the king when it comes to crude supplies, but they became Prince." 

Iraq used years ago to be the second - largest oil supplier to India, and as a result of delays in supplies, due Awaq in shipping operations caused by poor infrastructure for ports, but it made improvements to these structures in the last period in a move aimed to provide a stable supply, boosting its position in the Asian markets. 

Arun Kumar Sharma , chief financial officer of the largest Indian company to deal with oil and is expected to crude oil supplies from Iraq this year , rising to 18 million tons, 15.6 million tons reached in 2016, while Sthaaft supplies from Saudi Arabia at the same level.
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OPEC OIL PRODUCTION ROSE IN MAY OWED TO UNEXPECTED BOOST FROM IRAQ
Increase highlights fragility of cartel’s pledge to limit its output to stabilize crude market
Iraq, June 14, 2017
pic908885.jpg?59439

The Organization of the Petroleum Exporting Countries said Tuesday it produced more crude oil in May, underscoring the fragility of the cartel’s agreement with other big producers to cut output and stabilize a slumping market.

OPEC’s output rose 1% to over 32.14 million barrels in May, led largely by increases from three of its 14 members: Libya, Nigeria and Iraq, according to the cartel’s closely watched monthly market report.

The increase from Libya and Nigeria wasn’t a surprise because those countries were exempted from any obligation to cut as they try to come back from sabotage and violent disruptions to their supplies.

But Iraq agreed last December, and again in May, to some of the largest production cuts undertaken by the cartel. Instead its output increased over 44,000 barrels a day to over 4.4 million barrels a day.

OPEC’s members have agreed with 10 nations outside the cartel to cap their production at roughly 1.8 million barrels CLN7, -1.16% LCOQ7, -0.99% a day lower than levels in October 2016. Their goal is to draw down historically high amounts of oil in storage, which represent a global oil supply that has kept prices between $45 and $55 a barrel for much of the year.

marketwatch

http://iraqdailyjournal.com/story-z15451045

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I

7 hours ago, yota691 said:
 
Wednesday June 14, 2017 14:38

 

Search Bigger
 
 
 

Alsumaria News / Baghdad 
with the intensification of competition between oil producers on Asian markets, exports of Iraq in May / May , the list of suppliers of crude oil to India, for the third consecutive month, surpassing Saudi Arabia . 

Shipping data, collected by the agency "showed Bloomberg " economic Iraq reported one million barrels of crude oil to India over the past month, and formed a supply Iraq about 23% of the total purchases of India for that month, while the Kingdom 's share fell to 17%.

 
 

The total of Indian imports of crude oil in May / May , around 4.35 million barrels per day. India imports, which has the size of its economy two trillion dollars, more than 80% of its needs of raw materials. Expects the International Energy Agency that India is the fastest growing consumer of raw materials by the year 2040 

, said R.. Ramachandran Chairman of Refineries Company " Bharat Petroleum", the second - largest state - run refinery in India, said that "Saudi Arabia were the king when it comes to crude supplies, but they became Prince." 

Iraq used years ago to be the second - largest oil supplier to India, and as a result of delays in supplies, due Awaq in shipping operations caused by poor infrastructure for ports, but it made improvements to these structures in the last period in a move aimed to provide a stable supply, boosting its position in the Asian markets. 

Arun Kumar Sharma , chief financial officer of the largest Indian company to deal with oil and is expected to crude oil supplies from Iraq this year , rising to 18 million tons, 15.6 million tons reached in 2016, while Sthaaft supplies from Saudi Arabia at the same level.

If they are going to be King of Oil the dinar better darn show it, that all I have to say.  

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Iraq's 2017 Target for Oil Expansion Within Reach, WoodMac Says

by
Grant Smith
and
Julian Lee
June 15, 2017, 3:37 AM PDT
  • Reaching 5 million barrels a day of capacity ‘not unrealistic’
  • Iraq may want to press OPEC for leeway if cuts are extended

Iraq’s ambition to boost oil-output capacity to a record 5 million barrels a day is “not unrealistic” as the country prepares for the end of OPEC-mandated supply limits, consultants Wood Mackenzie Ltd. said.

Iraq, which has been rehabilitating its oil industry after years of conflict, has vowed to keep expanding capacity while respecting an Organization of Petroleum Exporting Countries’ accord that will limit its production until next April. The country wants to be ready for either the end of that deal, or to press its OPEC partners for some leeway if the group chooses to further prolong output curbs, Edinburgh-based Wood Mackenzie said.

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OPEC’s second-biggest producer reluctantly agreed in November to participate in production cuts to end a global oil glut, arguing it deserved to be exempt while reviving its economy and battling Islamist insurgents. Iraq also hesitated before backing a nine-month extension of the accord finalized on May 25, and has only made about half its pledged output curbs this year, according to the International Energy Agency.

“From a production capacity point of view, the investment in a few of the southern fields is taking them closer to that number,” Ian Thom, principal upstream analyst at Wood Mackenzie, said in an interview. “They may be thinking ahead to the end of the nine-month period, when if they can demonstrate capacity of 5 million barrels, it may make for a different conversation with OPEC members.”

Saudi Arabia, OPEC’s biggest member, has signaled the group is prepared for even longer output curbs if the current measures fail to reduce the world’s bloated fuel inventories.

Output Hurdles

Iraq pumped about 4.6 million barrels a day in December, just before the OPEC-mandated cuts took effect, according to data compiled by Bloomberg. The development of the West Qurna-1, Halfaya and Zubair oilfields could take Iraq “a long way towards that number” of 5 million barrels, Thom said.

Getting beyond the 5 million-barrel level may prove more challenging, according to Wood Mackenzie. A range of obstacles is checking Iraq’s potential, from limited water supply for injection to maintain reservoir pressure to the “very tough” contractual terms that discourage companies from investing, Thom said. While there’s a program to drill 30 wells at the Majnoon field, bottlenecks in oil treatment facilities will hinder growth, he said.

https://www.bloomberg.com/news/articles/2017-06-15/iraq-s-2017-target-for-oil-expansion-within-reach-woodmac-says

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Iraq Is New Oil King, Beats Saudis in Fastest Growing Market

by 
Dhwani Pandya
 and 
Debjit Chakraborty
June 14, 2017, 1:29 AM CDT June 14, 2017, 3:31 AM CDT
  • Iraq is top oil seller to India for third month: shipping data
  • Indian refinery upgrades, Iraq port overhaul boosts shipments

Iraq is gaining the edge over Saudi Arabia in the world’s fastest-growing oil consumer amid an intensifying race among producers to retain their most-prized markets.

Iraq was the top crude supplier to India for a third month in May, shipping 1 million barrels a day, according to shipping data compiled by Bloomberg. Iraqi supplies accounted for 23 percent of India’s purchases last month, up from an average 19 percent in the previous four months, while Saudi Arabia’s share fell by 1 percentage point to 17 percent, the data showed.

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Oil producers are facing increasing competition in major markets like China and India as OPEC and its partners continue efforts to curb output to clear a global glut. India’s $2-trillion economy imports more than 80 percent of its crude requirement and the International Energy Agency expects it to be the fastest-growing consumer through 2040.

“Saudis used to be the king when it comes to crude supply, but now it’s becoming a prince,” said R. Ramachandran, the head of refineries at Bharat Petroleum Corp., India’s second-biggest state-run refiner. “Preference for Iraqi crude will continue as Indian refiners continue with refinery upgrades.”

Iraq, which had been the No. 2 seller to India for years, was able to overtake the Saudis as Indian refiners have implemented plant upgrades over the past couple of years, enabling them to process crude with a higher sulfur content.

The Middle East nation has also improved its port infrastructure to ensure a stable supply. Iraqi crude used to be less preferred due to delays and inconsistencies in shipments as the Gulf nation lacked the required port infrastructure, according to Ramachandran.

"Iraqi crude is getting attractive and it suits our refineries very well,” said Mukesh Kumar Surana, chairman of Hindustan Petroleum Corp. "Iraq has come out of the supply uncertainties and the pricing is very competitive.”

Indian Oil

The state refiner buys about 4 million tons of Iraqi grades annually on a term basis, which matches the volume it gets from Saudis. Indian Oil Corp., the nation’s biggest processor, will boost Iraqi imports to about 18 million tons in 2017 under term contracts from 15.6 million last year, said Finance Director Arun Kumar Sharma. Saudi purchases will remain steady at 5.6 million tons.

India’s total crude imports in May remained flat from April at 4.35 million barrels a day, according to the shipping data. Iraqi supplies fell 11 percent last month from 1.14 million barrels per day in April, the highest this year.

Iraq, the OPEC member which is among the most closely watched nations for compliance to the group’s curbs, exported 3.93 million barrels a day in May, the highestin 2017, according to vessel tracking and shipping agent data gathered by Bloomberg.

 

https://www.bloomberg.com/news/articles/2017-06-14/iraq-beats-saudis-to-become-oil-king-in-fastest-growing-market

 

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https://www.bloomberg.com/news/articles/2017-06-14/iraq-sends-millions-of-barrels-of-oil-to-u-s-while-saudis-cut.......

 
 

Iraq Sends Millions of Barrels of Oil to U.S. While Saudis Cut

by 
Julian Lee
 and 
Alex Longley
June 14, 2017, 8:15 AM CDT
  • Flows are surging amid signs Saudi Arabia is honoring curbs
  • Iraq now bigger supplier than Saudi to key Indian market
 
 
 

Ayers' Barratt Sees U.S. Oil Inventories Building

Iraq is driving up crude oil exports to the U.S., the world’s second-biggest import market, just as there are signs Saudi Arabia is honoring a pledge to restrict such deliveries, according to tanker-tracking data.

The second-largest producer in the Organization of Petroleum Exporting Countries loaded 12 million barrels of crude for the U.S. in the first 13 days of this month, the tracking shows. That’s about 50 percent higher than the same period in either April or May. Comparable Saudi Arabian flows slumped by about half. Iraq isn’t fully complying with pledges to OPEC to curb production, the International Energy Agency said Tuesday.

“It’s like the IEA report said, some members have been less than wholly diligent,” Giovanni Staunovo, a Zurich-based commodity analyst at UBS Group AG, said of Iraq’s early June shipments. The fact that Iraq contested parts of the plan to cut output when the accord was implemented in November mean it’s “no surprise” to see flows rising now, he said.

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While Iraq is among OPEC nations that pledged to restrict production to eliminate a global glut, there are signs that it may nonetheless be gaining a share of key import markets. The country’s crude flooded into the U.S. in late May and early June, just as Saudi Arabia’s flows diminished, weekly Energy Information Administration data show. Iraq also passed Saudi Arabia as the number one supplier to India, the fastest growing oil consumer.

Read how Iraq is gaining a foothold in India, the fastest growing market

The flow surge should show up in U.S. imports data sometime in late July. Tankers loading in the Persian Gulf take about 45 days to reach either the Gulf of Mexico or refining centers on the U.S. west coast. Equally, shipments could now decrease making the monthly tally lower than the near 1 million barrels a day average over June’s first 13 days.

The IEA said Wednesday that Iraq’s rate of compliance with OPEC, non-OPEC curbs is about 55 percent, while Saudi Arabia is among nations conforming in full.

As well as eight tankers that left Iraq’s Basra Oil Terminal and signaled U.S. destinations, there are seven more that either aren’t indicating where they’re going, or they’re bound for Egypt’s Suez Canal. Some of those could go still to the U.S.

The tracking data, which are for a relatively small time-span, show Saudi Arabian shipments in retreat. Three tankers were observed heading to the U.S. after departing the world’s biggest exporter in early June, hauling about 6 million barrels between them. That’s down from 14 million barrels in the same period in May.

Decreased Saudi Arabian shipments would be consistent with comments from the country’s Energy Minister, Khalid Al-Falih. He said at OPEC’s meeting in late May that there would be a “marked” decrease in the kingdom’s shipments to the U.S.

Saudi Arabia’s oil allocations to customers will be cut for July from their June levels, a person with knowledge of the matter said June 12, asking not to be identified because the information is confidential. About half of a 600,000 barrels-a-day nominations cut will fall on U.S. customers, the person said.

“That’s a bit of a new signal that the Saudis are willing to give up a bit of market share,” Michael Poulsen, analyst at A/S Global Risk Management, said of the relative changes in Saudi Arabia and Iraq’s shipments.

 
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