Oil rises 1% on settlement amid fears of supply shortages

[yota691]

2017/08/12 (00:01 PM)   -   Number of readings: 297   -   Number (3993)

 

 

Parliamentary Energy: Iraq must be out of quota if OPEC decides to cut production further

 Baghdad / Zahraa al-Jassim 
 

The Organization of the Petroleum Exporting Countries (OPEC) forecast in its end-of-the-week report to increase demand for its crude in 2018 due to growing global consumption and pointed to signs that the oil market is improving, with the reduction of OPEC-led production likely to save the market from surplus supplies , While the parliamentary energy will find these expectations beneficial to Iraq as it opens the way to overcome some of the economic challenges, stresses the need for Iraq to be out of the quota if OPEC decided to reduce production further, indicating OPEC's need to maintain the ceiling of current production in order to restore the oil market to the status of medicine Aware, because that market is still affected by US oil stocks. 

 On the other hand, an expert on the economic issue, that any increase in Iraq's oil exports or in oil prices will lead to increase the potential of the state and the Iraqi government, which will make us launch a missile in the process of economic and social development of the country, especially that the fact that Iraq is financially incapacitated is a matter of management Internationally and internally. 
The OPEC report also stressed that the world will need 32.42 million barrels per day of its oil next year, an increase of 220 thousand barrels per day than previously expected, adding that the current market in Europe and North Africa has improved and that the increase in prices of Brent crude for immediate delivery compared with subsequent supplies indicate The outlook for the Brent has stabilized amid some bullish signals in the current market, and the price differential has significantly improved for a number of raw materials in the markets of the Mediterranean, North Sea and West Africa. 
Oil rose above $ 53 a barrel, ignoring data in the report showing another jump in OPEC production, and is likely to continue to oversupply the market next year. 
A member of the parliamentary energy committee and former oil minister Ibrahim Bahr al-Ulum confirmed in an interview with Al-Mada that he still believes that the OPEC needs to maintain its current production ceiling in order to restore the oil market to normal, especially as prices are still in the markets affected by US oil stocks , And there seems to be a good work especially, and there are expectations of a further reduction in Saudi Arabia's production in the coming months, which is a correct point in this path, which remains Iraq's margin of flexibility greater economic requirements, especially as he has committed to the past period of OPEC plans and commitments were above the proportion of " 80% "This is in itself done to Iraq, so if OPEC decides to cut more production, Iraq must be outside the quota. 
Production outside the organization is also increasing, but not at the pace OPEC had previously believed. The Organization had previously forecast an increase of 1.10 million barrels per day (bpd) next year, down 40,000 bpd from earlier projections, based on downward revisions in the outlook for Canada and the United States. The report said the market would see a surplus of 450,000 bpd next year if OPEC continues to pump crude at July's rates, but less than the estimated surplus in the previous month's report. 
Bahr al-Ulum predicted that the price of oil in 2018 will reach between 53 and 55 dollars per barrel, which is useful for Iraq on the assumption that the supplementary budget planned to $ 44 per barrel of oil, again by saying: He stressed that any increase in prices would be beneficial to Iraq. At the same time, he predicted that any reduction in production in OPEC, especially if Saudi Arabia and Russia participated in the reduction, would also benefit oil prices and open the way for Iraq to overcome some of the economic challenges currently facing the country. 
The government approved the supplementary budget on June 22, changing the price of a barrel of oil from 43 dollars to 44.4 dollars, and voted by Parliament recently after discussing the items. 
OPEC has cut output by about 1.2 million bpd, while Russia and other non-OPEC producers cut their supplies by half as much as 2018. The agreement aims to dump excess stocks. In a sign that it is a success, OPEC said stocks in developed economies fell in June and fell by 87 million barrels compared with an average of five years since the cut began in January. OPEC said " 
US crude inventories are likely to fall further, taking into account the record rates of US refineries, "official data showed on Wednesday, with refinery utilization at the highest level in 12 years. * High demand and production Iraqi Oil Minister Jabbar al-Allaibi , Said on Friday that Iraq is committed to the policy of «OPEC» and the government of his country is committed to cooperate with Saudi Arabia, and there is room for difference He continued at a news conference in Riyadh with the Saudi Oil Minister: «We agree and agree with the proposals of Saudi Arabia, Some differences or differences from the side And that Iraq is ready to deal with any differences radically and immediately, and this gives a signal that Iraq is fully committed to the decision of «OPEC» and does not differ with Saudi Arabia or any other country In this regard 
He added that: «Iraq began a reduction in the month of January (January), and began about 75 thousand barrels. There were differences of more than 80 thousand barrels, and then began in February to reduce this gap that we reached 90 percent of the quota to reduce the exports of the South, and these figures correspond to the direction of the government, there may be a difference between 60 - 70 thousand barrels Because of the northern region », stressing that Iraq is committed to reduce 210 thousand barrels per day and there is no room for doubt or controversy in it. 
Al-Allaibi pointed out that his ministry overcame the differences by virtue of the government's share in the production of Kirkuk oil, which is equivalent to about 60 thousand barrels per day, and was directed one of the refineries in Erbil, and now after these actions at the level of 190 thousand barrels per day, To be processed. 
On the other hand, economic expert Majid al-Suri said in an interview for (the extent) that any increase in Iraq's oil exports or in oil prices will lead to increase the potential of the Iraqi state or the Iraqi government in the process of exploitation of these funds and if there is a rational management of these proceeds will have a starting Missile in the process of economic and social development of the country, and this increase could cover the budget deficit and even cover other financial needs for the process of economic development, pointing at the same time: that the deficit of the Iraqi government is a matter internally and internationally, L, wanted Iraq to be unable to finance the process of socio-economic development, on the other hand, in the absence of financial and administrative corruption, there was no deficit, connected: Therefore, any funds come to Iraq even under these circumstances and exploited properly and rationally to achieve this level of fiscal deficit. The influx of the state apparatus to more than 4 million and a half employees consumes more than 84% and half of the oil imports, Big in the financial crisis we are going through. 
The decline in oil prices and the war against the organization of the terrorist advocate revealed the fragility of the Iraqi economy as a state dependent on revenues from the sale of crude oil, to cover the expenses that have increased in the past few years, putting the government in a financial crisis imposed on the impact of many austerity measures.

[Officiallytook]

Pin it.

 

DV put us in your prayers our Son is on the way, it's our 3rd ... Prime Time Baby!!!

[nannab]

Congratulations on your newest addition DAD and MOM !! Prayers going up

for the little guy  and his family !!!! 

[Officiallytook]

2 hours ago, nannab said:

Congratulations on your newest addition DAD and MOM !! Prayers going up

for the little guy  and his family !!!! 

thanks NanB

[Argyll]

2 hours ago, Officiallytook said:

Pin it.

 

DV put us in your prayers our Son is on the way, it's our 3rd ... Prime Time Baby!!!

 

Congratulations!!!  I hope everyone is doing well!

[boosterbglee]

Congratulations on #3!

 

[Wiljor]

Prayers on their way brother, congrats on #3 🙏

[1lucdog]

This is an important Generation being born right now. I just had my 10 grandchild ( I was an only child, a classic case of overcompensation lol )... a healthy baby Boy as yours will be...They started labor right here at our house while visiting... Prayers for you all!

[wealthhound]

Blessings and congratulations to all our new extended DV family!! WH

[Floridian]

Congratulations on your 3rd baby.  Wishing you all the best.

 

[Mammaw]

I just welcomed my 23rd great grandchild and another due any day. They are all a blessing.  Never gets old. Keeps me young.  Thanks Yoita for the update. Sounds fabulous!!

[Officiallytook]

5 hours ago, Argyll said:

 

Congratulations!!!  I hope everyone is doing well!

 

5 hours ago, boosterbglee said:

Congratulations on #3!

 

 

5 hours ago, Wiljor said:

Prayers on their way brother, congrats on #3 🙏

 

5 hours ago, 1lucdog said:

This is an important Generation being born right now. I just had my 10 grandchild ( I was an only child, a classic case of overcompensation lol )... a healthy baby Boy as yours will be...They started labor right here at our house while visiting... Prayers for you all!

 

4 hours ago, wealthhound said:

Blessings and congratulations to all our new extended DV family!! WH

 

3 hours ago, Floridian said:

Congratulations on your 3rd baby.  Wishing you all the best.

 

 

2 hours ago, Mammaw said:

I just welcomed my 23rd great grandchild and another due any day. They are all a blessing.  Never gets old. Keeps me young.  Thanks Yoita for the update. Sounds fabulous!!

Thanks everyone 

 

Botswana, I felt like you did until my daughter actually got here... the kids are the reason I work and play this game of life.

[SnowGlobe7]

congrats all enjoy every second...even what seems like rough times are still wonderful with the one you love beside ya

[Officiallytook]

2 hours ago, SnowGlobe7 said:

congrats all enjoy every second...even what seems like rough times are still wonderful with the one you love beside ya

So true Snow, always and thank you

[yota691]

 

OPEC meets in November to end or extend production cuts 10:25 Last updated The time now is 10:59 AM 155 Watch         The Organization of the Petroleum Exporting Countries (OPEC ) will discuss the end or extension of the oil production reduction agreement in November.  "The Organization of the Petroleum Exporting Countries (OPEC) will discuss at a meeting in November whether it will extend the production reduction agreement or not," Kuwaiti Oil Minister Essam al-Marzouq said in a televised interview, quoted by Anatolia.   He added that "our next meeting at the end of November will be an OPEC ministerial meeting, and the most important items of this meeting to discuss the fate of the agreement to extend or terminate the reduction of production."  The cut was not reflected in crude oil prices during the second quarter of this year, which ranged between 50 - 52 dollars per barrel, compared with expectations of 55 - 60 dollars.  OPEC members and independent producers began early this year to cut oil production by 1.8 million bpd for six months in a bid to stabilize the crude markets.  The organization and other non-members agreed late last May to extend oil production cuts for an additional nine months from July 1 2017 until the end of March 2018.  Al-Marzouq, who chairs OPEC's quota control committee, He revealed that the countries of the Organization to "reach the level of oil reserves five years ago."  "The time is not near, OPEC countries were controlling oil prices, but now there are other sources such as rock oil, which represents 5 percent of global production, but private entities seeking to profitability."  Crude oil markets around the world are suffering from oversupply and limited demand amid steps being taken by FAO and independent producers to cut oil stocks.

[yota691]

Oil supply and demand

Jawad Al Anani

Oil prices fluctuated during the current month, up and down, but were generally higher than in the past two months. The correlation between a number of prices has become clearer than ever. The price of the dollar against the major currencies, the price of gold and the interest rate on the dollar are also turning, in the logical way expected in terms of direction, not in terms of the reasons or motives for this change. If there is an improvement in the US trade balance and some stability in the budget deficit, why should the dollar depreciate against gold? Or why gold is rising against the dollar without giving clear reasons for this in the gold market itself? There is no evidence that gold production has declined, or that monetary and commodity demand has changed. Therefore, the rise in the price of gold on the decision outside the market, and relates to the dollar itself. If speculations on the dollar go downhill and negative, it means that demand is slipping into a downward spiral. Therefore, the speculative movement on the dollar, which is carried out by US banks and the Federal Reserve Bank within the US market, or in major global markets, directly or through intermediaries, is intended to strengthen the expectations of the decline of the dollar exchange rate. The improvement in the US trade balance, the improvement in GDP growth rates, the improvement in the employment rate or the drop in unemployment to a slightly higher level of 4% are a reflection of this. Not only did the United States cut the dollar to increase demand for its exports of goods and services, but the Federal Reserve stopped raising interest rates, as most speculation speculated, especially as the bank raised interest rates twice a few months ago . This means that a policy of "quantitative easing" or providing liquidity to investors and consumers at low interest rates remains the main incentive for increased spending. Therefore, the dollar exchange rate may continue to fluctuate, reflecting the fact that the major economies are dissatisfied with this development. However, the trend is towards a slow decline in the dollar against major international currencies such as euro, yuan, yen, pound sterling, . It is clear that the fall in the price of the dollar should mean a rise in the price of gold. This is a continuing reality, as long as gold production or supply for sale remains within a few limits. If the rise in the price of gold leads to more production, reading the future of the dollar / gold exchange rate may take a different direction. In fact, interest rates have stabilized almost four months ago, and the price of gold is on the rise, and the dollar's exchange rate is gradually declining. Hence, the price of oil will fluctuate between time and time to climb, with a slight adjustment from time to time. While the experience has taught us that oil has risen in conditions where the world is suffering from economic decline and that it has returned in slightly better conditions, we must ask about the nature of the oil market itself. Some, including officials in oil countries, argue that the price of oil is subject to supply and demand conditions, like any other commodity, and no one in principle can oppose this conclusion. It is actually not a conclusion, but a general and intuitive fact, such as saying that one plus one equals two. But the sentence as commonly used to explain the volatility of oil prices refers to part of supply and demand theory, not to all of them. They have taught us in the economy that there is a clear difference between movement on the same demand curve on the one hand and the shift in the position of this curve up or down on the other. It is known that the relationship between the price of oil, for example, and the quantity required of it is the opposite of the curve itself, that is, if the price of oil is less than the quantity required of it, and if the price dropped, the quantities desired to buy. However, if external conditions affect the volume of demand, the curve itself will move to a higher or lower position. Therefore, if the demand for oil increases due to war conditions, due to a major economic recovery in Asia, the disruption of production of an important country or the reduction of OPEC production by two million barrels, all these conditions will lead to the same demand curve moving to a higher level , Which makes the required quantity at a higher level for each price. To say that oil is subject to conditions of supply and demand, rather than politics, is contradictory. The obvious change in political decisions affecting oil prices drives the entire curve to move, sometimes insanely and unpredictably, up and down. This is also part of supply and demand theory. Today's political factors play an essential and important role in the fluctuation of oil prices. Fortunately, or not, political factors do not all go in one direction, some of which affect the effect of others, and the result is that change remains within the limits of the oscillation, not in the area of volatility.  If OPEC wants to have an impact on oil prices away from changes in US oil reserves and dollar prices, it must adopt clear production policies, coordinate with other countries outside OPEC, and have an impact on world oil prices such as Russia . The world, whose population is expected to reach 20 billion in 2030, will remain more than 9 billion in 2040, requiring more than 120 million barrels of oil per day. Therefore, there is a need to move away from the use of oil as a means of war between producers.       Views 7   Date Added 25/08/2017

[spacetuna]

We are going to see a big spike in oil come Monday... 

Texas is the 6th largest oil producer in the world-  hurricane is expected to stall out and stay over Texas for several days- massive power outages expected with 35 inches of rain.

 

And Trump just pulled the Trigger on Venezuelan Sanctions...

https://www.cnbc.com/2017/08/25/trump-signs-executive-order-imposing-strong-new-financial-sanctions-on-the-dictatorship-in-venezuela.html

https://www.ft.com/content/eef2f976-75ea-11e7-90c0-90a9d1bc9691

[WheresmyRV?]

35 inches of rain?  I cant even imagine what that would be like along with the power being out for days, especially during the dog days of summer. Praying for the people in the path of that storm. 

[yota691]

2017/08/26 (00:01 PM)   -   Number of readings: 233   -   Number (4005)

 

 

Iraq exports 5 million barrels of oil before the end of 2017

 Baghdad / Fadia al-Jawari 
 

The forecast of the Iraqi Oil Ministry indicated that the rate of production of Iraq's crude oil at the end of this year to 5 million barrels per day, has revealed its intention to build five refineries with a capacity of one million barrels per day. This includes auditing the export mechanisms and contracts signed between the Iraqi government through its National Oil Marketing Company (SOMO) and the importers of Iraqi oil.


The director general of the National Oil Marketing Company (SOMO) Falah Al Ameri told a news conference attended by the «range», that «Sumo company has accurate export mechanisms as a solid company in all joints», adding: "There is an internal system of the company specified by the law is provided, That the oil is not exported except with the approval of the Iraqi oil minister, "pointing out that:" The marketing company is not allowed to enter another company without reference to the Board of Directors of the company, as oil companies were exposed to the relevant committees in the Ministry of Oil and these committees amendments and then ratified to expose On the oil minister. "Amiri said that" Sumo is considering offers All companies that apply for the export of oil and within the standards are accurate and examine the possibilities and the vigilance of those companies, therefore, all offers from companies are within the international standards, "noting that (Sumo) common programs, including Reuters programs to analyze the market at every moment"
 Director of Oil Products Marketing, Morteza Abdul Redha, said for his part that "the company (Sumo) adopts strict standards and does not export oil except with the approval of the Minister of Oil, adding that" the quantities of freight are priced and then go to the Development Fund for Iraq in the United States The money is not transferred to the Ministry of Oil or the Ministry of Finance, but the funds go to the Development Fund and are withdrawn by the Central Bank of Iraq and then enter the federal budget of the Iraqi state.
He added that the process of export and the transfer of funds are monitored by Transparency International and the Financial Control Bureau and there is no error in information provided by the company Sumo, noting that the company does not allow the existence of intermediaries in the export process and this has caused problems with government agencies trying to "He pointed out that the price of oil is made through the international and regional market pricing such as the Gulf market and the markets of Asia, America and Asia, indicating that Iraq enters the oil trade market from the widest door." He said that the company since 2006 and so far did not fall into serious mistakes, She was careful about the accuracy of her information Ahratha a day to be moving towards pricing company, not just marketing. "
Iraq is reforming its oil sector, including the launch of crude sales through auctions on the Dubai Mercantile Exchange to reach higher prices and set up joint ventures to trade and transport crude to understand the dynamics of the market, seen as a plan to gain influence and increase revenues as the country seeks to rebuild its economy. 
In turn, the oil expert Hamzah al-Jawahri said in an interview for "Al-Mada" that "the commitment to the agreement to reduce oil production with OPEC continues and the agreement will end soon, adding that" the reduction of oil production in order to drain excess quantities in the oil markets and controlled by speculators, Oil recovery gradually after the withdrawal of excess quantities of oil. "
"The jeweler that" Iraq will come out of the agreement in the event of termination only in the case of the desire to raise oil prices above levels of 60 or 65 dollars per barrel, "adding that Iraq continues in its development programs in terms of oil production and export, The increase in production and then an increase in exports in the event of global improvement of oil prices "The 
Jeweler said that" the Ministry of Oil had announced in advance that the development of border fields between Iraq, Iran, Iraq and Kuwait, these fields are eight, pointing out that the first phase has been agreed to develop two fields with Iran They are my fields Dabad and Khanqin) and then other fields, noting that "the development programs for oil production can not be stopped because of the development and competition in the production and export of oil in the world."
He pointed out that "Iraq has developed carefully planned plans to reach self-sufficiency from the production of gas as one of the first in the production of oil and has a large quantity of oil fields and productive and we have foreign gas investment companies attractive and good offers and long-term strategies in the investment gas associated with oil production operations and projects You need time to get into actual production. " The Iraqi Oil Marketing Company (SOMO) has informed its customers that it intends to change the benchmark price of Basrah crude in Asia to the price of Omani crude oil futures on the Dubai Mercantile Exchange from the average price of Dubai and Oman crude on the Platts platform as of January 2018.

[Boozer]

that's a lot of doe at $50. On behalf of Maliki and his goons we would like to thank you for letting us steel you Blind. IMF and World Bank we thank you Too. Please fell free to send me, I mean Iraq more...and France I look forward to taking yours as well. 

[yota691]

In the table .. Iraq fourth in the world and the second in OPEC with the highest oil production

Economy News _ Baghdad Iraq ranked fourth in the world and the second in the Organization of Petroleum Exporting Countries highest oil production in 2016, according to the World Factbook issued by the CIA.  The table shows that Iraq ranks fourth in the world and the second in the Organization of the highest oil production in 2016 by the statistics of 4.836 million barrels.  Saudi Arabia ranked first with 10.250 million barrels, followed by Russia with 10.050 million barrels followed by the United States with 8.744 million barrels.

Views 3   Date Added 27/08/2017

[yota691]

Al-Allaibi: Next November will be a date for the decision of the possible extension of the agreement of OPEC and independents

economy

 Since 2017-09-01 at 12:58 (Baghdad time)

Baghdad Mawazine News

Oil Minister Jabbar al-Allaibi said on Friday that the decision to extend the world oil production agreement between OPEC and non-OPEC producers would be in November.

"Iraq will comply with the decision in the event of extension of the agreement led by OPEC to help bring stability to the oil market," said Allaibi, told reporters during a visit to Moscow, followed by "Mawazin News," noting that "the decision to extend the global oil production agreement between OPEC and non-member producers will be in November next. "

He added that "Iraq's oil production is currently 4.32 million barrels per day with exports of up to 3.23 million barrels per day," noting that "the Kurdish oil exports between 300 and 350 thousand barrels per day."

Al-Allaibi said that "agreed with the Russian oil giant" Lukoil "that the production of West Qurna 2 oil field 800 thousand barrels per day within three to five years.

The Minister of Oil, "Gazprom Oil, the arm of oil production for the Russian natural gas product, will reach production to 150 thousand barrels per day in the field of Badra in 2018."

[yota691]

OPEC meets late this month to discuss 3 files

Economy News _ Baghdad Kuwait's governor, Haitham Al-Ghais, announced on Sunday that Nigeria and Libya will meet next September 22 to discuss the latest developments in the oil-producing countries. "The vision of the Minister of Electricity and Water, the Minister of Oil and the Chairman of the Ministerial Committee to monitor the reduction of production, Essam Al-Marzouq, is based on inviting Libya and Nigeria to consult with them and to know their plans, and thus adapt to any variables to deal with them during the period," Al-Ghais said. The next OPEC ministerial meeting in November. " "There are three important future meetings, the first is the technical committee of the ministerial committee to monitor production on September 20, followed by the ministerial meeting of the production control committee on September 22 and then the general meeting of the OPEC countries and outside in November." He pointed out that "there are three main files at the meeting of the Technical Committee on September 20 next, the first associated with the recognition of the effects of US rock oil on the market, especially as one of the most common." Al-Ghaiss said that the second issue concerns the follow-up of the situation of Libya and Nigeria, and therefore they were invited to the meeting so that their plans and perceptions can be identified to deal with these visions in cases of increase and decrease in production. As for the third issue, al-Ghaiss stressed that the ministerial committee to monitor the oil reduction agreement will emphasize the importance of increasing the commitment of the countries to the agreement to reduce production, especially since the official data for July showed a slight decline in the commitment of the countries concerned, to 94% compared to 98% During the previous June.

Views 9   Date Added 03/09/2017

[yota691]

Texas refineries resume work after being hit by Harvey

Economy News _ Baghdad WASHINGTON (Reuters) - A number of major US refineries resumed work on Saturday, a week after Harvey stormed about a quarter of US refining capacity and raised gasoline prices to a two-year high.  Although much of the oil refining infrastructure in the region is still stalled by Harvey, refineries are starting to work again as a first step toward easing worries about fuel supplies in the United States. ExxonMobil said it had restarted its 650,000 bpd facility in Baytown, Texas, the second largest oil refinery in the United States after it was flooded. Phelps 66 said it was resuming work at its 247,000 bpd Sweeney refinery, as well as the Baytown port. The moves came after Valero Energy said late on Friday it had increased production at its refineries at CorpScore, Texas, as well as to assess damage caused by Harvey at the Port Arthur refinery in Texas. Retail gasoline prices have risen more than 17.5 cents since Aug. 23 before Harvey's arrival, amid fears the storm could lead to shortages. Gasoline prices rose to $ 2.59 a gallon on Saturday, up three cents from Friday, an increase of 16.7 percent on average from a year earlier, the auto group said.

Number of Views 8   Date Added 03/09/2017

[yota691]

Saudi Arabia, Russia discuss extension of OPEC deal

 

Reuters - Moscow

Russia and Saudi Arabia have discussed an extension of an agreement to cut oil supplies between producers from the Organization of the Petroleum Exporting Countries (OPEC) and others, but no specific decisions have been made, Russian Energy Minister Alexander Novak was quoted by TASS news agency as saying.

The Organization of the Petroleum Exporting Countries (OPEC) and other producers led by Russia are cutting oil production by the end of March 2018. A committee including OPEC and non-OPEC countries has recommended a further extension if needed.

"We met in St. Petersburg and discussed a similar option with Saudi Arabia, as possible within the framework of the signed agreements," Tusk quoted Novak as saying.

We study all kinds of options. We may consider the extension (the OPEC-led agreement) if necessary.

Interfax news agency quoted Novak as saying it was too early to talk about a possible extension of the deal.

OPEC and other major producers, including Russia, agreed at the end of last year to cut production by about 1.8 million bpd to help rebalance the market as oil prices fall. Russia agreed to reduce production by 300,000 bpd from October's 11.247 million bpd.

Data from the Energy Ministry showed on Saturday that Russia's oil production fell to a year low of 10.91 million bpd in August from 10.95 million bpd in July.                                                                                                  Reuters - Moscow September 6, 2017, 3 p