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Iraq confirms its commitment to reduce oil production
Tuesday 29 December 2020 46
Baghdad: Saad Al-Sammak Iraq reaffirmed its full commitment to OPEC Plus's limitations in reducing crude oil production, in accordance with the decisions of the organization and its allies to reduce the oversupply and control oil prices, which fell to a low level last May. The director general of the Basra Oil Company, Khaled Hamzah, confirmed to Al-Sabah, "The export rate has stabilized at two million 700 thousand standard barrels per day, through the Al-Faw oil port." Hamzah added, "Iraq committed itself to reducing crude oil production during the last period, in accordance with the quotas specified in the organization's program, stressing continuation at this level." He explained, "The Ministry of Oil has prepared plans to implement strategic projects to double the export capacity of oil ports, which currently amount to more than (4 million barrels per day), to accommodate the expected increases in production." Meanwhile, the Ministry of Oil revealed its plan to add a new floating platform to the previous platforms within the Japanese loan, as well as new pipeline projects and periodic maintenance operations. In a statement to the ministry, Deputy Minister of Oil, Karim Hattab, said: “We are working to provide an appropriate environment for workers who are keen to maintain oil exports.” This comes after Hattab's visit to the Basra oil port last Saturday. It is noteworthy that OPEC countries and countries from outside reached an agreement to reduce production, starting from the beginning of last May, by reducing about 9.7 million barrels per day, or the equivalent of about 10 percent of the total global production, after the price of a barrel fell to a level below $ 16 a barrel, affected On the repercussions of the Corona pandemic, and US oil prices fell below zero for the first time in history.
By Adam Montana
Is OPEC’s No.2 Finally Complying With Output Cuts?
By Tsvetana Paraskova - Jun 09, 2020, 10:00 AM CDT
Join Our Community OPEC’s second-largest producer, Iraq, which also happens to be the least compliant member of OPEC+ since the group started managing supply to the market in 2017, may have finally started taking its obligations seriously.
Iraq’s State Oil Marketing Organization (SOMO) has asked some of the Asian buyers of its Basrah crude grades if they could give up delivery of some already contracted cargoes for loading this month and next, sources familiar with the matter told Bloomberg News on Tuesday.
The request for buyers to forgo some cargoes for those months suggests that this time, Iraq may be earnest in its attempt to play ball in the OPEC+ production cuts, after being the biggest cheater in all previous pacts.
Iraq’s (as well as Nigeria’s) non-compliance with the record OPEC+ cuts in May nearly wrecked last week’s meeting of the pact, ahead of which the two leaders of the group, Saudi Arabia and Russia, had insisted that there would be an extension by one month to the current level of cuts only if laggards in compliance ensured over-compliance going forward to compensate for flouting their quotas so far.
OPEC+ agreed on Saturday to extend the record production cuts of 9.7 million bpd by one month through the end of July, contingent on all countries in the pact complying 100 percent with their quotas and compensating for lack of compliance by overachieving in the cuts in July, August, and September.
Before the meeting, Iraqi Deputy Prime Minister and then-acting Oil Minister, Ali Allawi, vowed that his country would further reduce production as it remains committed to the OPEC+ pact.
At the video news conference following the OPEC+ meeting, Saudi Arabia’s Energy Minister, Prince Abdulaziz bin Salman, emphatically said on Monday that “We have no room whatsoever for lack of conformity.”
Today, Iraq’s new Oil Minister, Ihsan Abdul Jabbar Ismaael, confirmed in a phone call with his Saudi counterpart Iraq’s “full commitment” to the cuts, OPEC said in a press release on Tuesday. Iraq confirms “its commitment to the voluntary oil production adjustments of June and July 2020, as well as the voluntary adjustments for the period following the end of July, despite the economic and financial challenges,” Ismaael told the Saudi energy minister.
By Tsvetana Paraskova for Oilprice.com
By Adam Montana
OPEC deal important for oil market stability: Iraqi PM
By Mohammed Rwanduzy 2 hours ago Iraqi Prime Minister Adil Abdul-Mahdi addresses reporters during his weekly press conference in Baghdad on July 2, 2019. Photo: Iraqi PMO video ERBIL, Kurdistan Region — Iraq’s premier praised the OPEC deal to on Tuesday staying oil production cuts for nine more months because it is important for market stability as Baghdad is so heavily dependent on oil revenue.
“This is important for market stability. This topic, for us, the Kingdom and all the producers and exporters of oil is important because budgets depend on oil market stability,” Iraqi PM Adil Abdul-Mahdi told reporters in his weekly press conference on Tuesday. Members some non-members of the Organization of Oil Producing Countries (OPEC) met in Vienna this week. Following a prior agreement on Monday between Saudi Arabia and Russia, the cartel agreed to extend production cuts of 1.2 million barrels per day (bpd) for nine more months until March 2020 in a bid to push global prices higher.
The agreement was based on the Saudi desires to “face market developments and preserve the measures undertaken”, the PM Abdul-Mahdi revealed, adding that he had a phone call with Saudi King Salman prior to the deal.
According to Iraqi Ministry of Oil statistics for the month of June, Iraq’s oil revenue fell from $7.38 billion in May to $6.4 billion in June as its exports fell by 6 percent, from 111 million barrels in May to 105 million barrels in June.
Iraq exports around 3.5 million barrels per month — the second highest crude oil producer in OPEC.
Iraq has agreements, especially a mega deal with the US giant ExxonMobil, to develop its southern oilfields to increase its production capacity. However, due to a missile that hit the main headquarters of the company in Basra, some foreign staff were evacuated in June.
The attack against ExxonMobil came amid soaring US-Iran tensions; Iraq could be negatively impacted if the hostilities breakout between Iran and the US.
However, it also raised questions about Iraq’s ability to provide a secure atmosphere in which foreign companies could invest in the decades-deprived oil sector. It has been reported that Iraq could act as Iran’s “ATM” to provide a loophole for US sanctions.
Abdul-Mahdi, in his typical understated manner downplayed the incidents against energy and other companies working in Iraq, claiming they do not exceed those in “other countries.”
“The security measures are crystal clear. Yes there have been threats, but no real security violation has taken place to any of our oil and non-oil installations. We undertake all measures,” he said.
Some ExxonMobil employees have returned, the PM claimed, without elaborating.
Separately, the PM also touched on connecting Iraq’s electricity grid to Arab and regional electricity grids — namely Jordan, Syria, Saudi Arabia, Turkey and Egypt.
“We haven’t concluded this matter. It is still in the discussion stage. There is both a technical and a financial aspect to it. This is not something that [doesn’t entail] certain financial burdens, extending networks, and costs for these units,” the PM said, though adding the discussions are “serious.”
“We, as Iraq, have to be connected to [electricity] grids just like the countries of the world,” he emphasized.
Iraq does import electricity from Iran, but there needs to be greater interconnection with other regional countries, the PM posited.
Iraq’s electricity grid is aging and strained by an increasing population, reconstruction and development. Usage also peaks in the summer months as temperatures in the south soar over 50 Celsius. The hours of government-produced electricity varies greatly across Iraq and the Kurdistan Region by geography.
By Adam Montana
I know, it's not Wednesday...
I mentioned recently that the "Weekly Updates" may be switching days - I expected
the news to start getting busy, and that is now official! I haven’t picked a specific day yet,
and I may not need to.
The weekly updates won't be necessary once we have an RV, and the stars are lining up very
nicely right now.
Fingers crossed on that one. I’ll explain why below, and you might want to strap in for this one!
First, the budget was submitted, signed, and looks like it will be passed, with a HUGE
keynote - a significantly acceptable portion of the budget going to the Kurds. This has
been a major point of contention between the parties over the years, in fact it’s possibly
the biggest point of disagreement and reason for delays in the budget approval process
in recent history.
You can read the budget as it is written and posted here, but it needs to be published in the
Gazette to be official. This may be happening yet this week, and if it does... that will be insanely
It's barely the first week of February!!! Last year the Budget was boycotted by the Kurds in March,
and they threatened to secede over the disputes.
THAT is how far we've come in a year!!!
If you’re not already squirming, let me tell you - this is awesome news. A happy GOI is a
GOI that we can get behind, because it’s one that is more likely to RV. And this is possibly
the happiest we’ve ever seen them!
That by itself may have been enough reason for me to send out a special email on most
weeks, but this week - THIS week - we have more.
Maybe MUCH more!
I’m trying to contain my excitement, and I’ve been doing a pretty good job of staying (mostly)
in my seat, but it’s getting more and more difficult.
We may have an HCL agreement shortly!
I’ve been on the verge of releasing this information for over a week, and I’ve only held off
because THIS is the kind of movement we need to see for an RV to happen, and I didn’t
want to release the news without a full confirmation.
As the news keeps coming out, this is going to start getting press in other places, so you
may as well hear it here.
If you’ve been following me for any time now, you know I’ve been on an “HCL-requirement”
kick for a couple years now. No HCL = no RV. I've harped on that for years... and now, after
a long ride, it's not just on the horizon - it's coming at us, lights flashing and horns blaring!
If you have NOT been with me for that long, let me introduce myself!
Hi, I’m Adam Montana. The possibility of a Dinar RV has been in the works for a while
now - over a decade, in fact.
I’ve been following it, and helping tens of thousands of people avoid bad info, for the entire time.
The summary on Iraqi Dinar is simple - back in 2003, the country of Iraq went through some
stuff and their currency plummeted in value. It was once worth over $3 per one Iraqi Dinar,
and now it’s worse than 1000 dinars to $1.
It was even worse, so much worse that those of us who got in early enough have already doubled our money.
But, and this is why most of us are here in the first place, it stands a fighting chance of going
back to it’s former value, or “ReValuing”, upwards to the tune of 100x where it is now or even more.
When that happens, those of us who have the current Iraqi Dinar (not the “old notes” with Saddam
Hussein’s face on them) will be able to exchange at that higher value, winning us an amazing profit.
It’s called a “windfall”, and it’s definitely a real thing.
Here’s where yours truly comes in. Throughout this whole venture, and before most of us ever heard
of the Iraqi Dinar, I’ve been fortunate enough to have contacts in places that matter to get the absolute
best return on the exchange. Because of the loyal group of members here at dinarvets who have committed
to work alongside my partners and I in this, we have formed the STRONGEST and BEST CONNECTED
group of dinar holders in the world… and this gives us EVEN MORE leverage. It's a snowball effect, and
it's a good place to be.
In short, we’re going to put more money in our pocket than the average Joe or Mary that simply goes
to the bank to cash in.
Not only that, but the years of networking and planning for this event have allowed my contacts and
I to put together the absolute best strategies for reducing tax liabilities, minimize risk, and even invest
after the fact to increase our returns.
The best part? There will be no “800 numbers” to call. The VIP group will NEVER part with their dinar as part
of their exchange. And if you decide to pay the measly amount of money it costs to join the VIP group,
you are ABSOLUTELY GUARANTEED to get a return on that expense when we cash in on the RV, or I’ll
refund every penny you spent on VIP.
Your time may be running out. Join VIP here, before it's too late.
Back to the Dinar, for the past couple years I’ve been saying that we need to see progress on the HCL
to see the RV. While other websites and “gurus” are talking about people already cashing in (fake news),
or having “secret intel” on the timing of this event… I’ve been telling people to remain calm.
That’s one of the reasons thousands of VIP members place their trust in my and the programs here,
because I don’t fluff this stuff up just to get people excited.
I do the opposite - if there’s nothing going on, I tell it like it is, no matter who gets mad at me for it.
(It happens! )
Well… the time that we have been waiting on may be over. There is news out right now that is more
encouraging regarding the HCL than ANYthing I have ever seen, and that means we’re almost there.
It means this may be your last chance to get in VIP. Your chance to get in VIP may be over before I
get this email sent out! And if the RV is announced, and you’re not in the VIP group - you’re on your
own. No benefits, no tax benefits, and good luck to you.
Now is probably the most URGENT time in this venture to get in VIP.
Join here: https://dinarvets.com/forums/index.php?/store/category/1-vip-membership-packages/
Remember, there’s a money back guarantee. You have nothing to lose and a LOT to gain.
See you in there!
- Adam Montana
P.S. In reading the above, I see that I didn't explain why the HCL is important. In a nutshell, it's important
to the Kurds so they get a fair share of oil revenue, and ties in very closely to their concerns on the budget.
Both of those issues are melting away, right in front of our eyes.
With these two things lining up at the same time, we have the most perfect situation to see an RV that I've
RIGHT NOW is an amazing time to be part of this situation!
By Adam Montana
Published: May 19, 2017 6:12 a.m. ET
AFP/Getty Images Saudi Arabia's minister of energy Khalid A Al-Falih in Vienna, on June 2, 2016. By
MARKETS REPORTER BIMANMUKHERJI
Oil futures moved sharply higher on Friday, as investors showed some optimism about what will come out of next week’s meeting of the Organization of the Petroleum Exporting Countries.
Up for final discussion by the cartel is whether to extend the current six-month production-cut deal beyond the mid-2017 expiration, and if so, for how long and whether the reductions should be increased.
It is widely expected an extension will occur, and energy officials from Saudi Arabia and Russia this week signaled they back a nine-month extension. That helped give oil a start-of-week gain that’s been built on since, putting crude on pace to modestly top the 3.5% jump logged last week.
After settling Thursday at three-week highs, light, sweet crude futures for delivery in June CLM7, +1.64% jumped 59 cents, or 1.2%, to $49.93 a barrel. The contract briefly topped $50 a barrel for the first time since April, according to FactSet data.
July Brent crude LCON7, +1.77% on London’s ICE Futures exchange also gained 59 cents, or 1.2%, to $53.10 a barrel.
Li Li, energy research director at ICIS China, attributed Friday’s advance to pre-meeting optimism, but said she doesn’t “expect prices to jump hugely from the current trading range.”
The presidential election in Iran was also grabbing oil trader’s attention on Friday. Commerzbank analysts said the result could have “major consequences for the oil market” if conservative cleric Ebrahim Raisi wins the vote. Raisi and reform-oriented incumbent Hassan Rouhani are leading the polls.
Read: Iranians head to the polls in high-stakes presidential election
Raisi has expressed criticism of the nuclear agreed in 2015 that paved the way for the U.S.-led sanctions to be lifted and allow Iran to sell oil on the international energy markets.
If Raisi wins “the agreement in its current form would risk being overturned. New sanctions would then very likely be imposed by the US and the West, which could reduce the oil supply from Iran even in the short term,” the Commerzbank analysts said.
“An election victory for Raisi would therefore drive oil prices up noticeably,” they added.
Read: The overlooked upside for oil in Iran’s election
Later on Friday, oil prices would also be steered by the latest weekly U.S. rig-count data from Baker Hughes. That report has shown 17-straight weeks of growth in active oil-drilling rigs.
But government figures on Wednesday showed the first week-to-week drop in domestic oil production since February, a development which also helped lift crude prices this week and get light, sweet crude back toward $50.
To some, the past two weeks’ price rebound was to be expected after April’s slide. That drop “was a case of sentiment over substance,” said BMI Research. It sees more price gains to come the next several months, but they “are more likely to be incremental rather than exponential.”
As for oil products, Nymex June gasoline futures RBM7, +1.72% rose 1% to $1.62 a gallon, while ICE gasoil gained 1% to $469.75 per metric ton.
Natural gas futures NGM17, +2.36% advanced 0.8% to $3.21 per million British thermal units.
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