Committee looking to extend the OPEC production cut

[sandfly]

THANKS

[yota691]

Oil prices rose to 13% after the production cut

History of edits:: 11.01.2016 14:43 • 20 visits readable

{International: Euphrates News} Oil prices have risen by as much as 13 percent since OPEC announced in 27 of last September, cut production to support prices.

But to achieve further gains will be limited probably at a time when the market is negatively affected by further signs of the arrival of OPEC production record level, in an indication that the oversupply, which curbed the prices were shrinking fast pace sought by bettors at higher prices. 
By the time 08:46 GMT, Tuesday, futures contracts for crude western US Texas rose intermediate 16 cents or 0.34% to $ 47.02 a barrel after having dropped nearly 4% to $ 46.86 a barrel in the previous session. 
rose International benchmark crude blend "Brent" by decades 45 cents or 0.99% to $ 49.09 a barrel. After he fell raw "Brent" by about 3% on Monday. 
Thus , oil prices have risen by as much as 13 percent since OPEC announced in 27 of last September, cut production to support prices , which have fallen since mid -2014, the organization said that the details the final cuts by Member States for the production of oil will be at a meeting later this month. 
but the organization has agreed to close on Monday sets a long - term strategy ,which means returning to the role for the management of the market and become active more to anticipate changes in the market. this 
comes at a time when the Organization data showed "OPEC" Achieving the production in the first Chehrtcheran past, a record 33.82 million barrels per day ,with the resumption of Nigeria and Libya are part of the production after the disabled, while raising Iraq 's foreign sales of oil. on 
the other hand, said energy Minister of Kazakhstan, Kanat Bozzombayev Tuesday that his country does not intend to cut oil production , despite attending meetings between OPEC and the oil producing countries are not members of the organization to discuss the restriction of production. 
he told Bozzombayev told reporters that the "Kashagan" field giant, which is about international oil companies to start commercial production from it will be the main engine of economic growth, adding that " the restriction production of "Kashagan" field will not be possible ".anthy

[Wiljor]

Print

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     IRAQ PUBLISHES OIL DATA NEVER SEEN BEFORE TO PROVE OPEC WRONG

 

Iraq has released detailed data about the crude oil output at each of its 26 oilfields as well as equally detailed export figures in an attempt to prove that OPEC’s external-source output estimates do not reflect reality.
This is an unprecedented level of detail for the data – Iraq usually supplies just one figure for output and one for exports. Now, the data also includes a total output figure from fields in Kurdistan.
According to these figures, Iraq pumped 4.7 million bpd in September, a few hundred thousand bpd more than what the external sources that OPEC uses for its calculations reported. However, Bloomberg notes, most of the difference between Iraq-reported and externally sourced production figures comes from Kurdistan output, and Iraq’s State Oil Marketing Company did not supply a breakdown of that.
This transparency drives started last week, when Iraq’s Energy Minister, Jabbar al-Luaibi, invited media to Baghdad to discuss production data. The invitation reflected the minister’s renewed effort to remain exempt from OPEC cuts, after initially lashing out at OPEC’s management for using external source-data as the basis for discussing future production quotas, rather than self-reported figures.
The effectiveness of this transparency move, however, remains doubtful. Iraq is OPEC’s second-biggest producer, and it wants to be exempt from a production freeze. It is unclear 
how revealing higher production figures than those reported by external source would help its case, unless OPEC has agreed to agree to a cut on a percentage basis—which may very well be the case.
But the most solid argument that Iraq has in defense of its push for an exemption is its continuing battle with the Islamic State, which necessitates maintaining production at its current levels, regardless of what those production rates really are.
Source: Oil price
PUKmedia

[Wiljor]

Iraq, November 1, 2016 

Royal Dutch Shell and trading house Vitol are stepping up their operations in the port of Fujairah to store Iraqi crude as production from the OPEC member rises, industry sources said. 

Iraq is OPEC's second largest producer after Saudi Arabia and its output has almost doubled since the start of the decade at 4.7 million barrels per day (bpd). 

With a target of 5.5-6 million bpd by 2020, Iraq wants to be exempt from the cartel's bid to boost oil prices with production cuts to reduce a global surplus. 

Located on the east coast of the United Arab Emirates at the entrance to the Strait of Hormuz, Fujairah is one of two major ports in the region along with Oman's Sohar and is a busy refuelling point for tankers taking crude on long voyages out of the Gulf. 

The emirate is keen to boost its status as a global trading hub by increasing its port storage capacity from 10 million cubic metres to 14 million cubic meters by 2020. Traditionally, it focussed on fuel to power tankers and refined oil products. 

Shell leased five large crude storage tanks at the port last year to take advantage of low oil prices for the play, industry and trading sources said. Shell is an equity partner in Iraq's Majnoon oilfield. 

"The storage tanks were built specifically according to Shell's requirements," a trading source in Fujairah said. 

"Shell wanted to avoid any fluctuations in production out of Iraq. So far they are the only ones who have a contract with (storage company) Vopak to bring crude using the new jetty," another trading source said. 

Vitol has also started to store crude sold by the northern Kurdish government in Fujairah, several trading sources said, that is being used in its 82,000 barrel per day (bpd) Fujairah refinery. 

Vitol and Shell declined to comment. 

The storage tanks leased by Shell have a total capacity of 478,000 cubic metres and were built by Vopak , the world's largest independent storage tank operator. They are part of an expansion plan to take the total storage capacity of Vopak's joint venture in Fujairah to 2.6 million cubic metres. 

The expansion also included the construction of a Very Large Crude Carrier (VLCC) jetty, the first on the Indian Ocean Coastline of the Arabian Peninsula, which was launched last month.

zawya

 

http://iraqdailyjournal.com/story-z14185327

[sandfly]

THANKS WIL, LET;S SEE WHAT THEY HAVE TOO SAY

[sandfly]

THANKS

[Wiljor]

11 hours ago, sandfly said:

THANKS WIL, LET;S SEE WHAT THEY HAVE TOO SAY

an honor sir

[SocalDinar]

Peak Oil Demand Growth, Come And Gone. Supply Still Gushing

Nov. 3.16 | About: The United (USO)  

 

 

Danielle Park, CFA

Follow (779 followers)

Absolute return value

 

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Juggling Dynamite

 

Oil (WTIC) fully retraced its September 28 to October 19 "OPEC freeze" hope rally this morning. Down nearly 12% from the latest October peak around $52/barrel, it broke below $46 in early trading. Trouble is OPEC's output hit an estimated all-time high of 33.82 million barrels a day in October, even as members Iran, Nigeria, Libya and Iraq are still seeking an exemption from production cuts in any agreement that may be reached on November 30. Never mind the long history of members cheating and pumping more even when they do agree on output limits, if OPEC members can't freeze, a world of non-OPEC members certainly have no reason to. The credit bubble of 2005-2015 enabled so much over-investment in this space. Sunk costs now in, everyone that can pump has reason to continue.

The other gusher taking many oil bulls by surprise is coming from 'zombie' energy suppliers (coal, oil and gas) that were driven into bankruptcy over the past year and yet are continuing to produce full-out nonetheless. The Wall Street Journal explains in Bankruptcy bust: How zombie companies are killing the oil rally:

 

Energy investors have long hoped that falling prices would solve themselves by driving producers into bankruptcy and stanching the flood of excess supply. It turns out that while bankruptcy filings are up, they have barely impacted fossil-fuel markets.

About 70 U.S. oil and gas companies filed for bankruptcy in 2015 and 2016. They now produce the equivalent of about 1 million barrels a day, about the same as before they declared bankruptcy, according to Wood Mackenzie. That represents about 5% of U.S. oil-and-gas output…

This is exactly the way chapter 11 was meant to work. The process is designed to save companies that can be saved, and many energy companies are using it to lighten their heavy debt loads, adapt to lean times and keep producing.

http://seekingalpha.com/article/4018719-peak-oil-demand-growth-come-gone-supply-still-gushing

[SocalDinar]

OPEC Special-Case Nations Add 450,000 Barrels in Threat to Deal

Angelina Rascouet @arascouet

Grant Smith

November 2, 2016 — 5:04 AM PDT

The OPEC countries claiming exemption from a deal to limit oil production increased output by almost half a million barrels last month, potentially jeopardizing the group’s agreement unless other members deepen their own cuts.

Libya, Nigeria and Iran -- granted special status after OPEC members reached a supply deal Sept. 28 in Algiers -- pumped an extra 400,000 barrels a day in October while Iraq, also demanding an exemption, added 50,000 barrels a day, according to a Bloomberg News survey of analysts, oil companies and ship-tracking data.

The Organization of Petroleum Exporting Countries plans to trim output to a range of 32.5 million to 33 million barrels a day to balance a market still swamped by surplus oil. The group pumped a record 34.02 million barrels a day in October, up 170,000 barrels from September, the survey showed. OPEC ministers will meet Nov. 30 in Vienna to decide how the burden of cuts will be shared.

 

 

 

Nigeria and Libya led the gains in production as their oil industries recover from acts of sabotage and internal chaos. Iran’s output continued to rise following the removal of international sanctions in January, though output growth has slowed in recent months. Increases in these countries heap pressure on Saudi Arabia and its Gulf allies to cut more from their own production to achieve OPEC’s output target.

 

Angola led production losses last month with a decline of 230,000 barrels a day. Cargo loading programs from the southern African country show no October shipments from the Dalia field, which normally ships at a rate of about 200,000 barrels a day.

Saudi Arabia, OPEC’s biggest producer and the world’s largest crude exporter, pumped 10.58 million barrels a day, 20,000 barrels less than in September.

Oil prices rallied after the Algiers deal, reaching $53.14 a barrel on Oct. 10, the highest since August 2015. They’ve since pared gains as skepticism grows over OPEC’s ability to follow through on its production agreement. Benchmark Brent futures traded at $47.46 a barrel as of 12 p.m. London time on Wednesday.

http://www.bloomberg.com/news/articles/2016-11-02/opec-special-case-nations-add-450-000-barrels-in-threat-to-deal

 

Edited November 3, 2016 by SocalDinar

[SocalDinar]

Iraq just published rare details on oil production

• Irina Slav, OilPrice.com

 

 

People work at the Halfaya oilfield in Amara, southeast of Baghdad, January 21, 2016. REUTERS/Essam Al-Sudani

Iraq has released detailed data about the crude oil output at each of its 26 oilfields as well as equally detailed export figures in an attempt to prove that OPEC’s external-source output estimates do not reflect reality.

This is an unprecedented level of detail for the data – Iraq usually supplies just one figure for output and one for exports. Now, the data also includes a total output figure from fields in Kurdistan.

According to these figures, Iraq pumped 4.7 million bpd in September, a few hundred thousand bpd more than what the external sources that OPEC uses for its calculations reported. However, Bloomberg notes, most of the difference between Iraq-reported and externally sourced production figures comes from Kurdistan output, and Iraq’s State Oil Marketing Company did not supply a breakdown of that.

This transparency drives started last week, when Iraq’s Energy Minister, Jabbar al-Luaibi, invited media to Baghdad to discuss production data. The invitation reflected the minister’s renewed effort to remain exempt from OPEC cuts, after initially lashing out at OPEC’s management for using external source-data as the basis for discussing future production quotas, rather than self-reported figures.

The effectiveness of this transparency move, however, remains doubtful. Iraq is OPEC’s second-biggest producer, and it wants to be exempt from a production freeze. It is unclear how revealing higher production figures than those reported by external source would help its case, unless OPEC has agreed to agree to a cut on a percentage basis—which may very well be the case.

But the most solid argument that Iraq has in defense of its push for an exemption is its continuing battle with the Islamic State, which necessitates maintaining production at its current levels, regardless of what those production rates really are.

A worker walks at the Nahr Bin Umar field, north of Basra, southeast of Baghdad, November 16, 2014. REUTERS/Essam Al-Sudani

Last week, Al-Luaibi rattled markets by saying that if it weren’t for the war with IS, Iraq would be pumping 9 million bpd, adding that Iraq had lost market share to other producers as a result of the conflict, implying that a production cut in Iraq would mean losing even more market share.

This Friday, yet another meeting between OPEC members and some non-OPEC producers ended with not even a whiff of an agreement. Iraq and Iran both insist on an exemption from a freeze or cut, and the chances of the organization breaking the deadlock are getting slimmer.

What Iraq’s data release does do for the markets, is confirm the notion that production figures for OPEC members lack some transparency or accuracy, which may bring even more volatility to the already volatile markets.

http://www.businessinsider.com/iraq-published-data-on-crude-oil-output-at-fields-2016-11

[Wiljor]

Iraq, November 5, 2016 

Summary

Prospects for an oil production deal remain murky at best.

But more important now is whether Iraq is allowed to be exempt.

If it is, it signals Iraq's demand for indefinite, unfettered production will be granted.

Such an agreement would damage OPEC little less than no agreement.

A deal on such terms might not do much to rally oil prices.

It's "six-five and pick 'em" if there's an oil deal or not. But something else, equally momentous, may be afoot in the OPEC cartel tonight. A long-running, simmering but never boiling argument might be headed for a resolution, one way or another. And that debate may actually have more to say about the future of oil markets than any short-term cap deal OPEC puts together.

 

Latest Oil Developments

The problem started a few days ago with news out of OPEC that was, as usual, not so much bad as murky. On the one hand, Saudi Arabia and the other Gulf states were ready to support a 4% output cut. Even with Iran, Nigeria, and Libya all exempted, that would come to almost 1.2 million barrels per day if applied across the board to the rest of the cartel. Considerably more than was reported earlier, which should have helped prop oil up.

Except, Iraq was demanding to be added to the list of states exempt from any cuts at all. That was bad, since Iraq is the cartel's number-two producer behind only Saudi Arabia. An exemption for them would rob the deal of a fair amount of its shock and awe power in the oil markets. The Saudis promptly insisted this was it, this was absolutely where they drew the line. They would not give Iraq an exemption from the deal. And yet Iraq absolutely would not cut. So where did that leave us? With a deal falling apart.

Which was bad for Iraq, but even worse for Saudi Arabia, apparently. Because now word is circulating of a new deal, to patch up the latest hole in the old one. If the latest rumors are accurate, Iraq will accede in theory to the idea that "everyone" has to cut - but only if Saudi Arabia accepts an Iraqi production estimate so high that Iraq is left with little real cutting to be done.

 

seekingalpha

 

http://iraqdailyjournal.com/story-z14208940

[yota691]

Algeria: Work on the implementation of the members of OPEC agreement to cut output

History of edits:: 11/6/2016 22:36 • 76 visits readable

{International: Euphrates News} He and Algerian Energy Minister Noureddine Bouterfa, Sunday, expressed confidence that OPEC members Seetmscon agreement to reduce oil production reached in Algeria in September.

He Botrqh, that the technical committee of the Organization is working to implement {agreement}. 
The news agency quoted the official APS for Bouterfa as saying that he will not reverse the Algiers Agreement, which is now being implemented. 
He met officials from OPEC in Vienna last month, to put the details on the reduction of production oil but failed to reach an agreement. 
the committee will meet at a high level of experts again in Vienna on November 25 th, ahead of the ministerial meeting of the Organization in the thirtieth of the same month. 
the, OPEC agreed last September in Algiers to cut crude oil production to between 32.5 million and 33 million barrels per day in the first cut since 2008 in order to raise prices. 
but the deal faces potential setbacks because of Iraq 's claim exemption from it because of its war with terrorist Daesh gangs, and the requirements of spending them, as well as the demands of countries such as Iran, Libya and Nigeria who have damaged their production as a result of sanctions, war and want to increase Almarod.anthy

[yota691]

Allaibi: Iraq is counting on the next ministerial meeting of OPEC to stabilize oil market

Monday 21-11-2016 | 9:30:41

 

 

 

 

MN / J p

Twilight News / confirmed oil minister Jabbar Luaibi on Monday, Iraq's keenness on the unity and strength of the Organization of Petroleum Exporting Countries "OPEC" in stabilizing the world oil market and support oil prices.

Allaibi said in a statement responded to the Twilight News, said that "his country's delegation to the next ministerial meeting of the Organization" OPEC "end of this month will carry the new ideas and proposals aimed at the events of greater convergence and consensus among members to reach an agreement guaranteeing the achievement of common goals for the producers, including the stability of the market and support oil prices to acceptable levels. "

He noted that "Iraq has been and continues to play a positive and clear role in dealing with the challenges and market volatility issues faced by the" OPEC "Engaged Organization over the past decades," stressing that Iraq reaffirms his commitment to the unity and cohesion of the organization and must not understand the legitimate Mtalibh as constitute an obstacle to reaching a new agreement to freeze production. "

The minister continued that "Iraq relies heavily at the next meeting on the concern and efforts of members and producers from inside and outside the organization and the wisdom of the Secretary-General Mohammed Barkindo to reach an agreement just takes into account the interests of all and put an end to the oversupply of crude oil in the global market."

[yota691]

WSJ: Iraq will present three proposals for OPEC output cut

 

Monday, November 21 2016 08:45

 

 

 

 

 

Alsumaria News / Baghdad  According to the newspaper " Wall Street Journal " quoted the Iraqi minister of oil Ali Jabar Luaibi, that Iraq will present three new proposals at the next meeting of the Organization of OPEC in Vienna to implement a cut in oil production.   The newspaper added, quoting Allaibi, "These options will be consistent with OPEC policy and will strengthen its unity."       Allaibi said the newspaper, said that "our choices based on other variables will facilitate the OPEC members make a decision." But he declined to give details on the proposals. "   Contact could not be reached immediately Iraqi oil ministry for comment, according to the newspaper.    The Reuters said last week that OPEC is close to reaching this month for the first agreement since 2008 to reduce oil production.

[Wiljor]

Oil Climbs to Three-Week High as Iran, Iraq Signal OPEC Accord

 

By Mark Shenk - Nov 21, 2016, 3:23:17 PM

 

3:12

Nov.20 -- Crude capped its first weekly gain since mid-October as optimism over an OPEC production deal grows. Algeria said the group's meeting with Russia had renewed confidence over an agreement while Iran also said its talks had proved promising. Bloomberg's Sam Wilkin reports on "Bloomberg Markets: Middle East."

 

Oil climbed to a three-week high as Iran signaled optimism that OPEC will agree to a supply-cut deal and Iraq said it will make new proposals to help bolster unity before next week’s meeting in Vienna.

Futures rose 3.9 percent in New York. Iranian Oil Minister Bijan Namdar Zanganeh said it’s “highly probable” OPEC will reach a consensus at the talks, according to comments published by Shana news service. Iraq will offer plans to help reach an accord, Oil Minister Jabbar Al-Luaibi said. Discussions went well, Libyan OPEC Governor Mohamed Oun said as he left the group’s Vienna headquarters on Monday evening. Goldman Sachs Group Inc. said the likelihood of an agreement meant the bank was bullish on oil in the short term.

 

 

Oil has rebounded from an eight-week low on Nov. 14 as members of the Organization of Petroleum Exporting Countries make renewed diplomatic efforts before their Nov. 30 meeting to finalize the supply deal they agreed to informally in September. The group’s plan to trim output for the first time in eight years is complicated by Iran’s commitment to boost production and Iraq’s request for an exemption to help fund its war with Islamist militants.

“The news flow from OPEC is encouraging,” said Mike Wittner, head of oil-market research at Societe Generale SA in New York. “This could turn on a dime, but for now the noise is positive and points to a deal.”

West Texas Intermediate for December delivery, which expired Monday, rose $1.80 to $47.49 a barrel on the New York Mercantile Exchange. It’s the highest settlement since Oct. 28. Total volume traded was about 11 percent above the 100-day average. The more-active January contract advanced $1.88, or 4 percent, to $48.24 a barrel.

Market Rally

Brent for January settlement climbed $2.04, or 4.4 percent, to $48.90 a barrel on the London-based ICE Futures Europe exchange. It’s also the highest close since Oct. 28. The global benchmark ended the session at a 66 cent premium to January WTI.

U.S. stocks were set for the highest closing level on record, led by energy companies. The S&P Oil & Gas Exploration and Production Select Industry Index rose as much as 4 percent to the highest level since November 2015.

The Bloomberg Dollar Spot Index, a gauge of the greenback against 10 major peers, fell as much as 0.5 percent. A weaker U.S. currency increases the appeal of dollar-denominated raw materials as an investment. The Bloomberg Commodity Index is heading for the biggest gain since April.

See also: The very real risks that OPEC won’t cut production

“There’s a lot of jawboning from OPEC, and market participants are positioning in response,” said Michael D. Cohen, the head of energy commodities research at Barclays Capital in New York. “We’re paying attention to signals from the OPEC ministers as they try to finalize an agreement.”

OPEC Jawboning

It’s likely that OPEC members will honor the accord and try to put it into action, Iran’s Zanganeh said after meeting OPEC Secretary-General Mohammed Barkindo in Tehran on Saturday. Iraq’s “legitimate demands” shouldn’t be considered an obstacle to reaching a deal to freeze production, Al-Luaibi said.

Russian President Vladimir Putin said he sees no obstacles to an OPEC agreement this month as he reaffirmed Russia is willing to freeze crude output at current levels. Russia has added more than 400 billion rubles ($6 billion) in projected budget revenue based on this year’s production talks, according to two officials familiar with the government’s calculations.

“Whether an agreement will be reached, I can’t say 100 percent, but there’s a strong likelihood that it will be achieved,” Putin told reporters on Sunday after attending the Asia-Pacific Economic Cooperation summit in Lima.

Goldman Sachs sees WTI at $55 in both the first and second quarters of next year, compared with prior estimates of $45 and $50 a barrel, according to a note on Monday. It lowered third and fourth-quarter estimates to $50 from $55 and $60 a barrel previously.

The bank now forecasts that OPEC will put in place a short-term cut to 33 million barrels a day, while Russia will freeze production.

Oil-market news:

• Money managers, producers and consumers made the biggest bets on WTI in nine years, amid signals more volatility is coming.
• Oil options traders are buying calls before the OPEC meeting, Morgan Stanley said. The put/call skew “has shifted meaningfully toward a bullish bias,” according to a report.
• Oil drillers in the U.S. added the most rigs in 16 months, according to Baker Hughes Inc. data released on Friday.
• US. crude inventories probably increased by 250,000 barrels last week, according to the median in a Bloomberg survey before an Energy Information Administration report on Wednesday.

Bloomberg 

[pokerplayer]

Nice article my friend. Iraq is playing nice on a world class scale now. +1

pp

[Boozer]

Play nice now and give me a BIG RV for Christmas

[Wiljor]

Saudi Arabia’s Sway in OPEC Limited by Resurgent Iraq and Iran

 

By Anthony Dipaola and Sam Wilkin - Nov 22, 2016, 7:01:02 PM

 

Saudi Arabia’s dominance of OPEC isn’t what it once was. 

Iraq and Iran, shaking off shackles of sanctions and war, have raised oil output to record highs and are asserting themselves within the Organization of Petroleum Exporting Countries. Together they produce more than 8 million barrels of oil a day, nearly a quarter of the oil pumped by the group, and both want to boost their output further.

 

 

The ambitions of OPEC’s second- and third-largest producers are the main obstacle to the Saudi-backed effort to trim the group’s output and buoy prices. Even if members reach a deal next week and accept production quotas, the reluctance of Iraq and Iran to cut output bodes poorly for their long-term cooperation with the kingdom -- and for stability in global oil markets.

“Iran and Iraq want an equal relationship with Saudi Arabia within OPEC,” Jaafar Altaie, managing director of Abu Dhabi-based consultant Manaar Group, said Monday. The two are “in a coincidental collusion in OPEC because it suits their common interest of getting as high a quota as possible.”

OPEC ministers will meet on Nov. 30 to work out a shared cut in production to between 32.5 million and 33 million barrels a day. Trimming output could help balance an oversupplied market and reverse a price slide that’s rupturing budgets from Venezuela to Saudi Arabia. Benchmark Brent crude has tumbled from more than $115 a barrel in June 2014 to less than $50 this week.

The group’s members granted special consideration to Iran in September, when they reached a framework agreement in Algiers, to help the country recover from international sanctions that were eased in January. With Iran now pumping almost as much as it did before sanctions, OPEC has yet to specify a level at which it will try to limit the nation’s output.

Read more about Iran’s plans to attract oil investors

Iraq too is pressing for an exemption from cuts, citing the urgency of its offensive against Islamic State. Oil Minister Jabbar Al-Luaibi said last month that Iraq would not pump any less than its official September output figure of 4.7 million barrels a day. OPEC disputes that figure and puts Iraq’s production for that month at less than 4.5 million barrels daily.

An OPEC committee convened on Monday and Tuesday in Vienna to decide how to share the burden of the Algiers agreement, but decided to defer the issue of Iraq and Iran’s participation to the ministerial meeting on Nov. 30, according to two delegates.

Iran and Iraq have grown in importance within OPEC as their production has increased. Iran has added about 880,000 barrels per day since the loosening of sanctions. Iraq has boosted output by about 50 percent over the past three years, to a record high in October.

 

 

Both countries need the higher prices that could result from a deal to attract foreign investment vital to their long-term production plans. They also want to sell as much oil as possible in the short term to bolster their depleted budgets. By securing exemptions to any cuts, Iran and Iraq could duck this dilemma.

That would leave Saudi Arabia to shoulder the biggest burden of a collective decrease, OPEC’s first in eight years, and cost the kingdom market share as its two biggest OPEC competitors keep their output unchanged. The Saudis vetoed an earlier deal in April when Iran, a political as well as an economic rival, refused to join in cutting.

OPEC is working toward a six-month agreement, delegates said this week. Such a short time frame could make it easier for Iraq and Iran to accept limits, if not cuts, in their own production, Manaar’s Altaie said.

Setting output limits now may create benchmarks for more permanent production caps for individual OPEC members, according to Tushar Tarun Bansal, director at Singapore-based consultant Ivy Global Energy.

“Iraq is looking to the future,” Bansal said. “They are trying to agree to a higher level of production for any halt so that they will be in a better position down the road.”

Bloomberg 

[yota691]

{OPEC} approaching a historic agreement to cut oil production

 

 

23/11/2016 0:00  BAGHDAD / Follow - up joy pumice  OPEC experts made progress in the two - day meeting in order to finalize the details of a plan to reduce oil production.  The author of this success at the level of the meetings of the relevant committees rise in oil prices ,which is the highest since three weeks, after expressing some delegates in OPEC expressed optimism about the possibility of reaching a final agreement, amid diplomatic efforts to Saudi Arabia (largest producer of the Organization of the Petroleum exporting countries) to carry the undecided members to join the production plan proposed by that.However, others have expressed concern over Iran's unwillingness to cut its oil production, believing that the deal could face potential setbacks after Iraq 's invitation to be exempt from the freeze, along with other countries , including Iran, Libya, and Nigeria for their exposure to international sanctions.  Reducing the surplus in when expressed observers and experts Iraqi economists are optimistic the results of the talks competent committees to reach an agreement on cutting production, and argued that the reduction of oil production of OPEC cooperation with non - member states would reduce the surplus gradually, which contribute to high crude prices, and thus supports the federal budget for Iraq. while trying to OPEC the oil - producing countries that are not members to reach agreement on reducing production, analysts find that this agreement will provide an opportunity for oil producers in the United States for the development of their oil output. lost share and gave OPEC members last week, suggesting along with Russia (non - member) for Iran to curb production, rather than Alqta.ccant Iran is one of the main obstacles facing reduced production by OPEC, which insisted Tehran exemption from OPEC 's decision, in an attempt to regain lost market share under years of Western sanctions.  the failure of the first meeting of the high level Committee, which held last October to reach an agreement, which was the focus of talks , one issue is not to freeze Iran's output, but in recent days, ministers and officials said OPEC approached about dealing with the points of disagreement, and ready (most members) to show the necessary flexibility to Iran on the size production.  the sources confirmed in OPEC that the combined committee has not decided the final policy, instead will make recommendations to the ministerial meeting of OPEC on this November 30.  help Iraq and had expressed economic expert , Dr. Ahmed Abrihi optimism that the Organization of Petroleum Exporting reach and cooperation with Russia to freeze production, pointing out that in the event of their agreement on it will begin the surplus to decline gradually, and at the end of 2017 will reach surplus to around 1.2 million barrels. he said the price of oil has already the $ 49 and exceeded rose, this scale is the best level since mid -2015, stressing that he if sustained, this would arrive at the price of a barrel of oil to $ 70 in the first quarter of 2017, helping Iraq much. oil prices surged on Tuesday to its highest level since late October, taking the markets in their accounts cut expected production led OPEC, but analysts warned that a failure to reach an agreement on production cuts may exacerbate oversupply by early 2017.  jumped futures for Brent crude to $ 49.63 a barrel , up 1.5 percent from the last settlement price to the highest level since October 31, where they were trading Brent crude at 49.58 dollars per barrel ,up 68 cents , or 1.4 percent, also increased the price of futures contracts for crude Texas intermediate 69 cents , or about 1.4 percent to $ 48.93 a barrel, while basket "OPEC" daily containing recorded on 14 kinds Khama 42.33 dollars per barrel, since Saudi Arabia began its to carry the members reluctant to join the production plan. seeks Organization of Petroleum exporting countries (OPEC) to reach an agreement at a meeting in Vienna on November 30 with 14 countries inside and outside the organization ensures reduction coordinator of production to support the market over the balance between supply and demand. investor optimism and said ANZ Bank , "with the growing investor optimism about reaching OPEC cut in production is expected that oil prices will continue to rise during the day."  said Goldman Sachs in a note to clients that the chances of OPEC cut production increased with the need for producers reaction to the erosion of the fundamental factors supply and demand, which the bank said was "weakened sharply since OPEC currently reached a preliminary agreement on production cuts." Goldman Sachs said that in the event of OPEC and other producers failed, especially Russia to reach an agreement, it is expected to see a market glut in the supply of up to 0.7 million barrels per day in the first quarter of 2017.oaaml OPEC members and producers are not members of the agreement to freeze increases oil production, where the Organization of Petroleum exporting countries said last September: it "looks to cut production to between 32.5 million and 33 million barrels per day, and is the first pieces of its production since 2008  and raised the hedge funds holding the net futures contracts for crude oil US options for the first time in the three weeks since mid - November, after having provided one of the largest cuts ever seen in the previous week, highlighting the move tensions among investors largely on oil in both directions. as likely , analysts Barclays held this deal, warning at the same time that the deal could have a little. the impact of the US oil and analysts predicted that OPEC will stick to the agreement to save face, but it will provide an opportunity for oil producers in the United States for the development of output up to 50. 55 dollars (a barrel), and will take advantage of any opportunity granted to them by the OPEC cuts, according to Barclays.

 

[Wiljor]

Iraq, OPEC's second-largest oil producer, has been pumping more oil over the past few months to reach an average of 4.56 million barrels per day (mb/d) in October.

Iraq, November 23, 2016  Iraq has to up its crude output because dwindling oil prices and the fight against Islamic State have left “a huge hole” in the economy, Foreign Minister Ibrahim al-Jaafari said, as the OPEC cartel scrambles to agree a production cut deal. “As oil makes up for more than 90 per cent of Iraq’s budget, a huge hole was knocked in the budget by the fall in prices right at the same time as we have had to increase spending on the army due to the fight against IS,” al-Jaafari told reporters during an official visit in Budapest. We need international understanding because we have to increase production in this situation. Iraq may be a rich country but it has huge problems. It wouldn’t be fair now if we decreased production,” he added.  Iraq, OPEC’s second-largest oil producer, has been pumping more oil over the past few months to reach an average of 4.56 million barrels per day (mb/d) in October. In a surprise move, the Organisation of the Petroleum Exporting Countries in September agreed to a deal to trim production and boost prices depressed since 2014. The accord — aimed at cutting output by 750,000 million mb/d to between 32.5 and 33 mb/d — is meant to be finalised on November 30 in Vienna. But OPEC’s 14 members have been at odds over the details of the plan, which is supposed to lead to a wider accord with non-OPEC producers, including Russia — the world’s largest producer alongside cartel kingpin Saudi Arabia. In addition to Iraq, Iran, Nigeria and Libya have also insisted they should be exempt from lowering their output. OPEC officials held a series of technical meetings ahead of the key conference in the Austrian capital to iron out differences in the deal. Speculation was mounting this week that the experts may be close to a deal to tackle the global supply glut, sending crude prices and energy stocks surging. “There is certainty that everybody is on board,” Nigerian OPEC delegate Ibrahim Waya was quoted by Bloomberg News as saying in Vienna on Tuesday. In its November monthly report, OPEC said its members pumped 33.64 mb/d in October, 236,000 barrels more than in September. indianexpress   http://iraqdailyjournal.com/story-z14329164

[sandfly]

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[Wiljor]

 

Iraq, November 24, 2016 

Iraqi Prime Minister, Haidar al-Abadi, expressed commitment on Wednesday (November 23) to abide by some of OPEC’s planned mandate to cut excess oil output, saying his country was willing to "shoulder responsibility.” 

The Iraqi Prime Minister’s stance in support of OPEC’s output cut comes as the country continues to fight the Islamic State (ISIS) group, and amid concerns that a decline in its oil revenue will likely hinder progress against the militants.

Speaking to reporters on Wednesday in Baghdad, Abadi said Iraq is ready to cut oil output in the aim to boost crude prices and reduce global supply as part of OPEC’s agreement.

"What we lose in lowering production we will gain in oil revenue. . . Our priority is to raise the price of a barrel of crude," he said.

OPEC members agreed last month to cut output for the first time since 2008, to 32.5-33.0 million barrels per day (bpd) from 33.5 million bpd.

 

nrttv

 

http://iraqdailyjournal.com/story-z14335505

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[yota691]

Oil Minister being leadership changes in the ministry

History of edits:: 11/24/2016 16:45 • 166 visits readable

[Oan- up] 
official in the oil ministry, said Oil Minister Ali Jabbar Luaibi held leadership positions in the movement for therevitalization of the ministry , which wants to improve Iraq 's capacity by the Organization of Petroleum Exporting Countries [OPEC] to increase oil production.

And will become the agent minister extraction for Refugees, Fayyad grace and agent of the state for the filter and replace Dhia al - Musawi , who will become an adviser to the ministry. 
The official , who asked not to be named , said he has not yet been set and the new Under - Secretary of extraction for. 
She declined the Oil Ministry to confirm or deny any changes. 
He took Allaibi office earlier this year and during the period from 2003 until 2008 he served as general manager of the southern oil company , which produces most of Iraq 's oil. 
after taking the ministry shortly called on companies operating in Iraq to increase production capacity. As counteracted calls from other countries in OPEC to cut Iraq 's oil production. 
Allaibi believes that it should allow Iraq to increase production to compensate for loss of income in the past thirty - five years , which has seen wars and sanctions. 
The oil official said the new moves aimed at "pumping new blood in the ministry and an end to the recession administrative. "

[yota691]

Iraq, Iran and diminish the influence of Saudi Arabia in OPEC {}

 

 

26/11/2016 0:00  Anthony Dapaula- Torgomh- Khalid Qasim  Saudi Arabia is no longer the dominant organization of force (OPEC) as it was for many years, Iraq and Iran after Tkhalsma of wars and sanctions restrictions lifted oil production to record levels and confirm themselves within the organization.  Producing countries together more than 8 million barrels per day , about a quarter of OPEC production and want to increase production more than that. The aspirations of the second and the third largest oil producers within OPEC obstacle to attempts Arabia to cut production and support prices. Even in the case reached producers of agreement in the next week and acceptance to production quotas, Fmmanah Iraq and Iran does not bode well for long - term cooperation with Saudi Arabia and the stability of world oil markets.  Says Jaafar al - Taie, managing director of the group Manar Consulting in Abu Dhabi: "Iraq and Iran , wants an equal relationship with Saudi Arabia within the (OPEC). combines the two countries deal coincidence in the organization because it fits in their mutual interest to obtain the largest possible share. "  planned confluence of ministers (OPEC) on the 30th of this month to get out a joint to reduce production to the extent of 33 million barrels per day. This reduction may help balance heaving about supply market and halt the slide in prices that hit the budgets of the producing countries.  Awarded the Member States special consideration Iran in September when they come to a framework agreement in Algeria in order to help Tehran to recover after the easing of international sanctions against it . Iran, which pumps the same level of output before the sanctions, but the (OPEC) has not yet determined the level to reduce the country 's output.  For his part , Iraq has been pressing for an exception to the reduction because of the urgent need to fight against Daesh. The oil minister Jabbar Laibi had said last month that the country will not be pumped below the level of September production amounting to 4.7 million barrels per day, OPEC , however , rejects this figure and says that Iraq 's production in September was less than 4.5 million barrels a day. I  met a committee of (OPEC) on Monday and Tuesday in Vienna to decide how to share the burden of the Algiers Convention, but decided to postpone the issue of the participation of Iraq and Iran to the ministerial meeting next week.  increased the importance of the two countries within the (OPEC) to increase oil production with , Iraq has boosted its production by 50 percent during the three years the last to reach a record high last month, while Iran  hence integrated approximately 880 thousand barrels per day since the easing of sanctions.  requires countries the highest possible price out of the Convention is important to attract foreign investment in the long - term plans for their production. He also wanted the largest possible amount of the sale of oil in the short term to enhance their budgets depleted.  This leaves Saudi Arabia alone to bear the brunt of the collective reduction it is the first of the organization for eight years and cost it market share while keeping Mnavsaha on their output unchanged. Global oil expert from Singapore says: "Iraq looks to the future, and trying to accept the highest possible level of production before the freeze to be in a better position in the coming years."  * Bloomberg site