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Iran: We will veto any decision by OPEC that harms our interests

Iran: We will veto any decision by OPEC that harms our interests

20 September 2018 01:23 PM
Mubasher : Iran has warned against using veto power against any OPEC decision that harms its interests, asserting that some of the producers of crude are trying to create an alternative supply that supports US policies, which she described as hostile to the Tehran government.

Iranian Oil Minister Namdar Zanghaneh told reporters in Tehran on Thursday that the agreement reached by OPEC and its allies in 2016 to cut production "is in a deplorable condition," quoting the agency "Bloomberg"

He added that the OPEC Committee, to be held at the end of this week in Algeria does not have any authority to conclude a new agreement related to supply.

According to press reports, the producers had not planned to take immediate action at the next meeting, and instead would discuss how they shared the agreed advance.

The United States is set to begin sanctions on oil entities importing crude oil from Tehran on Nov. 4.

The Iranian official said he would block any decision by OPEC, which poses the least threat to Iran, adding that any decision on a new production agreement by the WTO ministerial committee on Sunday would be "null and void".

"Any country that says it can compensate for the lack of supply from the market" is supporting the United States, "he said, noting that Donald Trump's decision to cut Iran's oil exports at zero was taken without consulting experts or the government.

 
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No indications of Gas prices going down any time soon in the USA now claiming to be the world's top oil producer. If so, we should work towards not importing Crude Oil from OPEC countries and worry less about their Oil prices being too high. The real truth is what keeps the Petro Dollar alive in return for security /protection to those oil producers in the ME. Looks they are tied at the hips for their own survival but the rest of the world is awakened by that union and working towards other alternatives rather than being held hostage on a sinking ship.       

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1 hour ago, Pitcher said:

 

 

DOD,  I believe it’s not just the oil companies that may be crooked.  If you are going to pick out one industry to label as crooks you might as well name them all.  

 

I'm not picking out just one industry to label as crooks, I'm commenting on the title of the thread. Trump wants OPEC to reduce the price of oil. It appears you needed to vent today for some reason, did Starbucks or Coca Cola piss in your Wheaties this morning? 

No need to name them all, it would go into 10 pages on here an is irevelant to the thread. 

An just for the record, I spent most of my life in the energy field building power plants an oil refinerys an very well versed on the process an cost of making electricity an gasoline. 

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It was not my best post ever, definitively a rant. Apologies to you.

 

I worked for Exxon for 4 years after my military service back in the 70’s.  I took your post the wrong way.  I get pretty amped up when I feel someone is trying to knock the oil business.  I’ve heard it all and get tired of it.  

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 Arab and international


Economy News _ Baghdad

Oil futures rose on Friday amid concerns about supplies as sanctions against Iran's crude exports approach, despite pressure from US President Donald Trump to cut prices.

Global Brent crude for November delivery rose 26 cents, or 0.33 percent, to $ 78.96 a barrel by 0647 GMT.

West Texas Intermediate crude for delivery in October rose seven cents, or 0.10 percent, to $ 70.39 a barrel.

Trump on Thursday called on the Organization of the Petroleum Exporting Countries (OPEC) to cut oil prices, saying in a tweet on Twitter: "Without us they will not be safe in the long term, yet they continue to push oil prices to rise."

OPEC is scheduled to meet with allies on Sunday in Algeria to discuss how to allocate production increases to compensate for the shortfall in Iranian supplies due to US sanctions.


Views 349   Date Added 09/21/2018

 
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OPEC is considering increasing oil production as sanctions against Iran close

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The Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC producers are considering a new increase in oil production of 500,000 bpd to compensate for the decline in Iran's supply due to US sanctions, which will come into force early next month, sources familiar with the matter said on Friday.

The latest data show that OPEC and its allies pumped less oil in August to world markets compared to their July output due to a fall in Iranian exports, the sources said today (September 21, 2018).

US President Donald Trump has said earlier that OPEC should reduce oil prices by increasing production. 

"We protect the countries of the Middle East, they will not have long safety without us, they are raising oil prices more and more, remember, you should lower oil prices now," Trump said in his Twitter account.

Oil prices have risen since OPEC member states, along with other producers including Russia, decided to cut production last year.

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http://www.nrttv.com/AR/News.aspx?id=4635&MapID=5

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On 9/20/2018 at 9:13 PM, Pitcher said:

It’s not being talked about much but there is an over supply of oil these days.  When oil gets over 65 bucks a barrel many companies and counties pump as much as they can while the price is at a point where they can make money.  Oil can be a feast or famine business.  I’ve known many many drillers and small operators who have gone bankrupt in the oil business.  

That is for sure. I have read that before and that seems to be the break point. 

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Russian Oil Production Hits Post-Soviet Record

 Sep 22, 2018, 2:00 PM CDT Rig

While there has been no love-loss between the U.S. and Russia in recent years, news coming out of Moscow yesterday was sure to cheer the most ardent Russian naysayers in both Washington and especially the U.S. energy patch.

A Russian government official, according to a Bloomberg report,asking to not be named since the information hasn’t been made public yet, said on Thursday that the country’s oil production increased to a new post-Soviet high and is fluctuating between 1.54 million and 1.55 million tons a day, driven mostly by state-run energy firm Rosneft.

Those numbers equal between 11.29 million and 11.36 million barrels per day (bpd) of output, bypassing a previous record set in October 2016, just a few months before Russian agreed to participate with a Saudi-led OPEC to reign in an over supplied global oil market and prop prices back up from multi-year lows.

News about Russia’s increased oil output comes a few days before the next meeting between OPEC and non-OPEC producers in Algiers where the informal group of producers will discuss their next step amid the variety of challenges facing current global oil markets as well as make a decision whether or not to extend their cooperation into next year - a safe bet would be that the game is still afoot and that cooperation will be extended

Top of the agenda at Algiers is sure to include talk about fresh U.S. sanctions that will hit Iran’s energy sector on November 4, and continued problems with Venezuela’s output and uncertainty going forward over Nigerian and Iraqi production. The meeting also comes amid worries that increased trade war moves by Washington against China and counter tariff moves by Beijing will eventually hurt economic growth and dampen global demand for crude oil.

Trump’s global oil markets playbook

There are also some prominent takeaways from yesterday’s disclosure. For starters, Moscow has played perfectly, perhaps unwittingly, into President Trump’s playbook of drumming up support for more oil production as crucial mid-term Congressional elections near on November 6, just two days after fresh sanctions will hit Iran. Related: Iran Starts Air Force Drills Near The World’s Crucial Oil Chokepoint

Republican Congressional hopefuls as well as incumbents need oil prices to remain below the psychologically important $80 per barrel price point in order to help keep gasoline prices from increasing more but also to avoid criticism from Democrats that Trump’s Iran policy is hurting voters’ pocketbook.

So far, Republicans can try to ride the coattails of a Trump initiated strong economy, stellar stock market performance, despite multi-year high stock valuations, and low unemployment, but historically higher gasoline prices can play a heavy toll on incumbents seeking re-election. For those old enough to remember the waning days of the Carter Administration, that lesson is still clear.

This week Trump has already taken to Twitter (again) to lambaste OPEC for higher oil prices, in what must appear a dismal déjà vu nightmare for the Saudis who have to balance the appearance of too much concession to Trump over oil prices and the desire to have support for higher oil prices to still offset several years of budget deficits incurred during the roil in global oil markets from late 2014 to early 2017.

It’s a balancing act that has caused the Kingdom to lose face with its fellow OPEC members, and has particularly drawn ire (even ridicule) from Iran, its fellow OPEC producer and arch-rival for geopolitical hegemony in the Middle East.

Trump, for his part, is also using Twitter as a way to appear to voters that he is in their corner and doing everything he can to put downward pressure on higher oil prices, and consequently higher gas prices at the pump. However, at the end of the day higher gas prices may not only hurt Republican chances in November but also spiral out of control for Trump as a large segment of voters magnify their disapproval of the president. In essence, voter angst over gas prices could spill over to the 2020 presidential election season.

Headwinds for Russian oil production

However, U.S. politics aside, there is another take-away from yesterday’s Russian oil output disclose. Russia’s high oil output numbers may not last, something major oil producers that use oil revenue as a major source of government funding dread talking about.

Russian Energy Minister Alexander Novak said on Tuesday that Russia is only three years away from maximizing oil extraction output before costs and taxes drive down production.

“We expect about 553 million [metric] tons of oil production in 2018. We will reach a peak of 570 million tons in 2021,” Russian news agency Interfax quoted Novak as saying Tuesday.

Almost half of current capacity could be lost in less than two decades, Novak said, with levels expected to drop to 310 million tons by 2035. Current reserves stood at 29.7 billion metric tons of oil as of early 2017, he estimated.

Without stimulating oil production, Novak warned Moscow’s budget risks losing 3.3 trillion rubles ($46.2 billion) in taxes and 1.3 trillion rubles ($19.4 billion) in investments beginning in 2022. “This is the inevitable result of increased production costs and excessively high taxes in West Siberian oil fields,” he said. Related: Iran: We Won’t Let OPEC Boost Production

Moscow, for its part, has changed the minerals extraction tax and the export taxes on hydrocarbons several times over the past couple years. Some of most recent changes and proposals for upcoming changes have generally been in favor of raising the taxes paid by oil and natural gas companies.

Reports claim that as much as 50 percent, possibly more, of Russia’s federal budget is derived from oil and gas revenue. However, Moscow disputes the higher figures, claiming that only about one-third of its budget is derived from its oil and gas exports.

Late last year, Moscow sough to put an end to its addiction to oil revenue by passing a fiscal rule that provides, among other items, greater predictability to medium-term budgeting where a portion of the oil and gas revenue the federal government can spend in a given year will be determined by a fixed oil price benchmark.

 

https://oilprice.com/Energy/Energy-General/Russian-Oil-Production-Hits-Post-Soviet-Record.html

 

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Is Oil On Its Way To $80?

- Sep 21, 2018, 2:00 PM CDT rig

Bullish news on both the supply and demand side sent oil prices up again on Friday morning, with Brent falling back after flirting with $80.

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Oil prices gained this week on outages in Iran and data showing demand from the United States in August was the highest since 2007. “Exports are already down quite a bit and will probably continue to fall,” from both Iran and Venezuela, UBS Group AG analyst Giovanni Staunovo told Bloomberg. Meanwhile, strong U.S. demand is “helping the market to stay in a deficit.” In early trading on Friday, Brent was flirting with $80 per barrel.

OPEC+ meets in Algiers. OPEC+ is set to meet in Algiers this weekend to discuss some of the details stemming from the June decision to increase collective output by 1 million barrels per day. Iran’s oil minister has vowed not to attend in protest of what Iran views as a Saudi attempt to take over market share from Iran, in collusion with the United States. Ultimately, the meeting might not amount to much, and Saudi Arabia could increase production anyway, offsetting declines in Iran. “It’s likely to be a meeting high on politics and low on decisions,” said Ole Sloth Hansen, head of commodity strategy at Saxo Bank A/S, according to Bloomberg. “The producers that count are producing at will.”

India to hedge oil to avoid rupee volatility. India’s government may ask its state-owned oil companies to lock in oil at hedged prices, both to avoid the possibility of a price spike as Iran sanctions bite, but also because of the uncertain value of the rupee. India imports about 80 percent of its oil, and the sharp depreciation of the rupee this year has magnified the cost of imports. Meanwhile, India will use rupees to pay for oil from Iran beginning in November after U.S. sanctions take effect.

Russian oil producers rise to all-time high. Russia’s oil companies are enjoying a bonanza due to higher oil prices but also a weaker ruble. With costs in rubles but earnings in U.S. dollars, the cash is pouring in, pushing an index of Russian oil companies to a record high. The danger is that American sanctions related to the chemical poisoning attack in the UK or election interference in the U.S. could target Russian companies. "All investors are asking themselves -- OK, the Russian companies look attractive right now, but what about the next six months, what about the next 12 months?" Alexandre Dimitrov, head of Emerging Europe EQ Funds at Erste Sparinvest Kap Mbh, told Bloomberg.

Iraq oil exports breaking new records. Iraq’s oil exports through its southern port at the Persian Gulf could once again break a new record. Exports for the first three weeks of September average 3.6 million barrels per day, up 20,000 bpd from the 3.58 mb/d posted in August, which is the current record high. The progress comes even as protests have rocked the oil-rich but deeply unequal southern city of Basra. “There were fears that the protests would get to the terminal,” an Iraqi source told Reuters. “But so far, there is no impact.”

Related: Saudi Oil Inventories Continue To Plummet

Chevron pursues “factory model” for shale drilling. The Wall Street Journal reported on the new large-scale drilling techniques pursued by Chevron (NYSE: CVX). The “factory model” for drilling consists of “master planning an entire region of small shale wells by locking up labor, building infrastructure and securing sand and other needed materials, all at once,” the WSJ says. Economies of scale for large companies like Chevron give them an advantage over smaller drillers. “They can transfer technology and skilled people across assets and parts of their portfolio from North America to Argentina,” Andrew Slaughter, executive director of the Center for Energy Solutions at Deloitte LLP, told the WSJ. “These bigger companies have the scale to build or finance infrastructure and secure the best equipment and supplies. They have come to shale in quite a material way.”

New data on EPA biofuels waivers. In a nod to the outraged biofuels industry, the EPA published data detailing its expanded use of waivers for oil refiners, freeing them of biofuels blending requirements. Biofuels and refiners have been in a fierce war during the Trump era, as the EPA has made decisions favorable to the refining industry. The new data shows that the EPA granted 29 waivers to small refineries in 2017, up from 19 in 2016 and 7 in 2015. The waivers have been a boon to refiners but have undercut the market for biofuels and biofuel credits.

Bakken drillers move to periphery. Bakken drilling has increased significantly this year, but higher activity levels means that drillers are being forced into less desirable locations. As a result, the majority of wells in the Bakken could shift from having a peak monthly production of 1,000 bpd to a majority of wells with just 500 bpd of peak performance, according to a study from the North Dakota Pipeline Authority. In other words, drilling activity may need to double to keep output levels consistent in the years ahead. 

Bullish outlook affects hedging. As the oil market outlook takes on an increasingly bullish tone, oil companies have pared back their use of hedging, hoping to gain exposure to higher prices. Meanwhile, major consumers, such as airlines, have boosted their hedging to protect themselves from the risk of higher prices. The reshuffling of the hedging mix is affecting the oil futures curve. “The major story for oil right now is not $80 a barrel, but what’s happening at the back end of the forward curve,” Thibaut Remoundos, co-founder of Commodities Trading Corporation, told the FT. “Hedging by oil producers in Brent-linked contracts is dropping off in expectation of higher prices in the future, while major consumers like airlines have been rushing to buy for the same reason. You would need to go back to 2007 to see this level of hedging from consumers.”

 

https://oilprice.com/Energy/Energy-General/Is-Oil-On-Its-Way-To-80.html

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Russia’s Energy Minister Sees Oil At $50

By Tsvetana Paraskova - Sep 18, 2018, 2:00 PM CDT Refinery

Oil prices in the long-term will be $50 a barrel according to Russian Energy Minister Alexander Novak, who noted that the current $70-80 oil price is driven by sanctions and will be temporary.

The expectation for a longer-term oil price at $50 per barrel is based on projections by oil companies and analysts, the Russian minister said, as carried by Reuters.

Novak also indicated that he expected Russia’s oil production to average 11.105 million bpd this year.

 

Last week, the Russian minister told Bloomberg in an interviewthat Moscow was ready to pump at record levels should the oil market require it. Russia hasn’t made any decision on production levels yet, Novak stressed, but added that Russia and its OPEC partners in the production cut deal would discuss production at the meeting in Algiers this coming weekend.

Russia is capable of adding 300,000 bpd to its production within a year, Novak said last week.

Earlier this week, the Russian minister said that the Algeria meeting could discuss all kinds of production scenarios.

Russia has already reversed most of its own production cuts as part of the deal, and has been keeping production at near record levels in its post-Soviet history.

OPEC’s leader and largest producer, Saudi Arabia, however, has so far shown production increases lower than the ones it initially hinted at in June.

Related: The Age Of Electrification Has Arrived

The Saudis are said to now be comfortable with the current oil price level and even with Brent Crude rising past $80 a barrel, at least in the short term, as the oil market and global supply adjusts to significantly reduced Iranian oil exports, Bloomberg reported on Tuesday, citing people familiar with Saudi Arabia’s thinking.

Higher oil prices are also a boon for Russian producers who benefit not only from the higher dollar price of oil, but also from the weaker ruble against the U.S. dollar, which additionally lifts the oil price in rubles.

 

https://oilprice.com/Energy/Energy-General/Is-Oil-On-Its-Way-To-80.html

 

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Oil sources exclude OPEC's approval of a new increase in production

Oil sources exclude OPEC's approval of a new increase in production
Image production platform
 
 23 September 2018 02:04 PM

 Mubasher: Five sources from OPEC and independent oil producers said it is unlikely that the joint committee, which includes ministers from the Organization and non-member countries at its meeting on Sunday, will see a new increase in crude production above those agreed in June.

According to Reuters, sources ruled out that the committee agree on how to distribute the increase of one million barrels per day, which was decided at the last meeting between OPEC producers and independents at the previous meeting.

The meeting of the Joint Ministerial Committee to Monitor the Implementation of the OPEC Agreement will take place today in Algiers, during which the status of the world oil market will be evaluated and work will be taken to maintain its balance.

Members of OPEC and independent producers led by Russia, beginning in 2017, began cutting production by 1.8 million barrels per day, with the agreement ending in December .

In June, it was agreed to increase oil production by one million barrels a day, starting last July, and the increase will be through cutting production cuts from 2.2 million barrels to 1.2 million barrels .

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  • yota691 changed the title to OPEC and its allies conclude without an agreement to increase supplies

OPEC and its allies conclude without an agreement to increase supplies

OPEC and its allies conclude without an agreement to increase supplies
 
Producers agreed on the need to focus on reaching a compliance ratio of 100%
 23 September 2018 03:38 PM

RIYADH - The Organization of the Petroleum Exporting Countries (OPEC) and its independent producer allies, including Russia, on Sunday concluded their meeting in Algeria without an official recommendation for any further increase in supplies .

Omani oil minister Mohammed bin Hamad al-Rumhi and his Kuwaiti counterpart Bakhit al-Rashidi told reporters, according to Reuters, that producers had agreed to focus on reaching 100 percent compliance with production cuts agreed at the OPEC meeting in June .

This means actually offsetting the decline in Iranian production, Al-Ramahi said that the specific mechanism for doing so was not discussed.

OPEC, Russia and other allies reached a deal to cut output by 1.8 million bpd in late 2016, but after months of supply cuts more than agreed, they agreed in June to  increase production by returning to compliance at 100 percent of reductions , Equivalent to an increase of production of about one million barrels per day .

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 Arab and international


Economy News _ Baghdad

LONDON (Reuters) - Oil prices rose more than 2 percent on Monday after OPEC refused to announce an immediate increase in crude production despite US President Donald Trump's demand for price cuts.

Brent crude rose 2.14% to $ 80.94 a barrel, its highest level since May, but fell to 980 GMT at $ 80.70 a barrel.

US crude futures rose $ 1.5 to $ 72.28 a barrel.

Oil traders said Monday that Brent crude will rise by $ 90 a barrel by the end of the Christmas holiday, and will exceed $ 100 a barrel in early 2019 as US sanctions on Iranian oil exports come into effect. Next November. 


Views 6   Date Added 09/24/2018

 
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Eliminate recommendation on increased production at OPEC meeting

   
 

 
 


24/9/2018 12:00 am 

Algeria / Follow-up 

Five OPEC and independent oil producers are unlikely to recommend a new increase in crude production above those agreed in June, a panel of ministers from the cartel and non-OPEC members said on Sunday.

The sources also ruled out that the committee agreed on how to distribute the increase of one million barrels per day, which was decided at the last meeting between OPEC producers and independents on two islands. Press reports said the Organization of the Petroleum Exporting Countries (OPEC) and its allies trimmed their oil production in August, as a drop in Iranian supplies due to US sanctions blocked their attempts to increase production and reach agreed levels. These developments are increasing pressure on the organization to boost production under US President Donald Trump's calls for oil prices to fall. A source familiar with the talks told Reuters that OPEC and its Russian-led allies were studying the possibility of increasing the supply of crude by 500 thousand barrels per day as US sanctions on Iran, the third largest OPEC producers, reduced Tehran's exports. 
"Saudi Arabia made a mistake in trying to compensate for the loss of Iranian supplies with a timely alternative, but the oil market is looking for greater security in this supply. As a result, high oil prices are placing oil demand growth at risk." The oil production control committee, which includes OPEC and independent producers, which meets in Algiers this week, concluded that the level of producers' compliance with the supply reduction agreement was 129 percent in August, according to two commissioners.

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OPEC has not responded to the threats of speculation and expectations of the arrival of oil for $ 100

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World oil prices rose more than 2 percent on Monday after OPEC countries rejected threats by US President Donald Trump to increase production to cut prices, while energy experts predicted a significant rise in oil prices to $ 100 a barrel.

Saudi Arabia, the biggest producer of Opec and Russia, its biggest ally outside the cartel, on Sunday ruled out an immediate additional increase in crude output in my refusal to accept US President Donald Trump's calls for action to cool the market.

The Saudi Energy Minister Khaled al - Faleh told reporters, " I do not Oather on prices" in atime when energy ministers OPEC member countries and their counterparts with some independent producers meeting held in Algeria, the meeting ended without a formal recommendation to any further increase in supplies, while  Oil Minister Iran, that "the OPEC meeting did not give a positive response to the requests of US President Donald Trump," saying, "The dream of the United States to stop the Iranian oil exports completely will not be achieved."

"The United States is seeking to stop Iranian oil exports altogether for even one month, but that dream will not come true," the ISNA news agency quoted Minister Zengane as saying.

A source familiar with the OPEC discussions had earlier confirmed that the organization and other producers are discussing the possibility of increasing production by 500 thousand barrels per day.

"The price of Brent crude could rise to $ 90 a barrel by Christmas and could exceed $ 100 in early 2019. Markets will be oversupplied after the second package of US sanctions against Iran comes into force in November," the oil companies Trafigura and Mercury said.

"Brent crude futures were the highest since May at $ 80.47, up $ 1.63, and the US WTI crude contract increased $ 1.18 to $ 71.96 a barrel.

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http://www.nrttv.com/AR/News.aspx?id=4733&MapID=5

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Economy News _ Baghdad

The global demand for energy is expected to grow 33 percent by 2040, OPEC Secretary-General Mohamed Barkindo said on Tuesday.

Barkindo was speaking during an occasion organized by the Spanish oil and gas company Thepsa.

Barkindo said during a meeting to answer questions that oil will continue to play a dominant role in the energy mix in the foreseeable future.


Views 41   Date Added 25/09/2018

 
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  • yota691 changed the title to OPEC: Global energy demand will grow 33% until 2040
 
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 Arab and international


Economy News _ Baghdad

Oil prices rose on Thursday, September 27, 2018, amid investors' expectations of a drop in Iranian exports as the United States imposed sanctions, which are already in effect on November 4.

Brent crude for November delivery rose 1% to $ 82.10 a barrel at 9:14 am. 
 
WTI crude for November delivery rose 1.15% to $ 72.39 a barrel, after falling yesterday to $ 71.57. 
 
US Energy Secretary Rick Perry said the release of oil from the country's strategic reserve to prevent rising prices would have "a slight and somewhat short-term effect." 
 
Oil prices fell yesterday after the Energy Information Administration showed US inventories rose by 1.85 million barrels to about 396 million barrels last week.


Views 460   Date Added 27/09/2018

 
 
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 Arab and international


Economy News _ Baghdad

 Saudi Arabia is quietly pumping more oil into the market over the next two months to offset a drop in Iranian output, but fears it may need to limit output next year to balance global supply and demand as US crude supplies grow.

The kingdom, OPEC's biggest producer, was under new pressure last week from US President Donald Trump to cool oil prices ahead of a meeting in Algeria for a number of OPEC ministers and allies, including Russia.

Two sources familiar with Opec's policy said Saudi Arabia and other producers had discussed the possibility of increasing output by about 500,000 bpd between the Organization of the Petroleum Exporting Countries and its non-OPEC allies.

But Riyadh has decided not to press for a formal increase at the moment as it realizes that it will not get the approval of all producers involved in the talks, some of whom lack excess production capacity and will not be able to boost production quickly.

Such a move would have strained relations between the producers, the sources said, while the Saudis were keen to unite within the OPEC + coalition if Riyadh wanted to change course in the future and asked for their cooperation in cutting production.

"What remains is the creation of tensions between Saudi Arabia, Iran and Russia," a source familiar with the discussions in Algeria said.

Saudi Energy Minister Khalid al-Faleh said on Sunday he was concerned that oil production increases, particularly from the United States, would exceed the expected increase in demand for crude, which could lead to a global stockpile.

The second source, also familiar with the talks, said: "The risks to the next year's demand are more than the supply risks."

Oil prices rose to their highest level since 2014, above $ 80 a barrel this week on fears that a sharp drop in Iran's oil exports due to new US sanctions would deepen the oil deficit along with Venezuela's output declines.


Views 17   Date Added 27/09/2018

 
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Release Date: 2018/9/28 11:22 • 490 times read
Iraq reveals why oil prices improved
Iraq attributed the improvement of oil prices in world markets thanks to the efforts of the Organization of Petroleum Exporting Countries (OPEC) after the previous agreement to reduce production.
Brent prices are currently at $ 80- $ 81 per barrel. 
Oil Minister Jabbar al-Allaibi said in a press statement that "the stability of the world oil market in large ranges and improvement in crude oil prices." 
"Things are stable in terms of oil markets because of the efforts made before," he said, noting that "the ministry has been watching the markets strongly and continuously and found an improvement in the global oil market." 
Al-Allaibi pointed out that "the price of a barrel of Brent oil fluctuates up and down," pointing out that "the price of a barrel of Iraqi oil ranges between 70 to 70.5 dollars." 
Oil prices rose on Friday as investors sought to gauge the potential impact on supplies from the sanctions the United States is about to impose on Iranian crude exports.
US sanctions on Iran begin with the third largest member of the Organization of the Petroleum Exporting Countries (OPEC) after Iraq on November 4, and Washington is demanding that Iranian oil buyers to reduce imports to zero to force Tehran to negotiate a new nuclear agreement. 
OPEC and its allies from independent producers, including Russia, the world's largest producer, met earlier this week but did not see the need to add new production under the current good market supply. 
US President Donald Trump stressed on September 20 that OPEC should cut oil prices immediately. " 
Trump said in his account on the social networking site Twitter:" We protect the Middle East countries, they will not enjoy long security without us and they raise prices More and more oil, remember you should cut oil prices now. "
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Iraq Aims At 60,000 Bpd Production At Newly Restarted Oil Field

 Sep 28, 2018, 8:00 PM CDT oil tanker

Iraq plans to have its newly restarted Qayara oil field in the north produce 60,000 bpd by the end of this year, targeting to gradually ramp up the current 30,000 bpd production, S&P Global Plattsquoted the Iraqi oil ministry as saying.

The Qayara oil field was shut-in for years until last year, due to the war with Islamic State.

In December last year, Iraq declared the war with ISIS over, and has been seeking foreign investments in major projects that would help revive its economy.

 

Before the war with the Islamic militants ISIS started, the oil pumped at the Qayara field was only directed to the local nearby refinery, partly because of its proximity and partly because of a lack of infrastructure for exports.

But after the oil field was restarted, part of its production was diverted for exports after a road with a loading platform for trucks was built, sources familiar with the operations told S&P Global Platts. Oil from Qayara has been transported via trucks to Kurdistan, Turkey, and Iran, according to Platts sources. Iraq’s state oil marketing company SOMO has been marketing the oil.

If Iraq manages to further boost production at the Qayara oil field, it could raise its oil production and exports and get more revenues at a time when oil prices are rising and supply from neighboring Iran is declining with the U.S. sanctions on Tehran’s oil sector snapping back in early November.

As per OPEC’s secondary sources, crude oil production in Iraq—OPEC’s second-largest producer—soared by 90,000 bpd from July to stand at 4.649 million bpd in August.

Related: Saudi Aramco Set To Boost Oil Capacity By 550,000 Bpd In Q4

Iraq’s oil production will only grow marginally over the next 10 years despite its potential capacity, which stands at as much as 7 million bpd, an analyst from IHS Markit has recently forecast. According to Christopher Elsner, Iraq will only be able to boost production to 5 million bpd over the next decade, and by 2036 it would only grow to 6 million bpd, Arab News reports.

The reason for the country’s inability to boost production considerably is the political and economic situation. Iraq is currently dealing with protests in the south prompted by problems ranging from a lack of access to clean drinking water and electricity to high jobless rates.

 

https://oilprice.com/Latest-Energy-News/World-News/Iraq-Aims-At-60000-Bpd-Production-At-Newly-Restarted-Oil-Field.html

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On September 20, 2018 at 7:34 PM, Pitcher said:

It was not my best post ever, definitively a rant. Apologies to you.

 

I worked for Exxon for 4 years after my military service back in the 70’s.  I took your post the wrong way.  I get pretty amped up when I feel someone is trying to knock the oil business.  I’ve heard it all and get tired of it.  

 

Hey Pitcher . . . I used to get the big bad oil company speech from time to time . . . after a while I took the filter off my remarks and really used to let the idiots have it.

 

They have no idea just how many products they used were produced with petroleum/not to mention the gas you get to drive your nice shiny car. . . and, I would add - - - " oh by the way, since you heat heat your home with Natural Gas, where the Hell do you think that comes from."

 

I used to work for Jacobs Engineering, Halliburton and recently retired from from Conoco. Yep, to some we're just pure evil.  

 

 

 

 

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Strong demand keeps oil prices rising

1326466-507349763.jpg?itok=klWYzWeX
Oil prices continued their upward momentum and the price of Brent crude rose to $82.72 per barrel. This was the first weekly closing above $80 since October 2014. West Texan Intermediate hit $73.25 per barrel. The Brent/Dubai spread widened to $9.47 per barrel by the week’s closing on Friday. The recovery in oil prices owes much to the strength of global oil demand.
When OPEC met in November 2014 and decided to change its market strategy, global oil demand was about 92 million barrels per day (bpd). It has now grown to nearly 100 million bpd, with crude inventories down below the five-year average.
For the first time since August 2014, predictions have begun on the return of oil to $100 per barrel. This is happening in an atmosphere of uncertainty as further output increases from OPEC are yet to materialize. At present, the market is not in need of any production hikes to compensate for the US sanctions on Iran’s oil exports.
Revising oil price forecasts higher could be rational, but the fundamental bullishness might be tempered by theoretical concerns over demand that have no strong argument of support. Inventory drawdowns continue and global oil demand has risen 7.5 million bpd since the end of 2014.
The fall in Iran’s oil output has yet to result in growth in OPEC’s output because the market supply/demand balance is still not in a supply deficit. This is why OPEC’s decision for an output increase will follow Iran’s output decline inversely for the rest of 2018. OPEC’s output is likely to rise in 2019 as needed.
Should output be increased now or is it still premature to ramp up production?
This is the question that every market analyst is considering. There are arguments that the oil market cannot be tight and yet well supplied at the same time. This is true. But although the market is tight, supply deficits haven’t materialized. For instance, all Saudi Aramco crude oil customers have been allocated their requested monthly crude oil shipments in their entirety. This is a strong sign that there is not a supply deficit in the market.
Additionally, the US has decided to sell 11 million barrels of oil from its Strategic Petroleum Reserve (SPR). Deliveries are to take place in October and November. The US SPR currently stores 660 million barrels of oil in massive underground salt caverns. It is the world’s largest supply of emergency crude oil. March 2014 was the last time oil was released from the SPR on a test basis. That happened when oil prices were almost $30 per barrel higher than their current level. It is possible for the US President to decide to tap the US SPR to try to modulate oil prices for the first time, but many analysts believe such a move would be largely symbolic.
The release of 11 million barrels isn’t enough to make up Iran’s entire production but that might not be necessary. This week India confirmed that it will continue to import oil from Iran, albeit at a reduced rate. China has also reduced Iranian oil imports but continues to defend its energy trade with Tehran. 
US President Trump could attempt to pressure India into a zero import position for Iranian oil, for without it his sanctions lack impact. However, efforts are under way by the EU, China and Russia to implement a barter system with Iran that will allow it to exchange oil for the imports it needs. OPEC is surely waiting to see just how much production is required before ramping up output.
Tapping the US SPR might not reduce oil prices amid the oil market tightness but instead further widen the Brent/WTI spread as a result of the difficulties facing shale oil producers in exporting their oil. This comes simultaneously with Cushing, Oklahoma inventories that are now close to tank bottoms. 
Rebuilding of these inventories has begun though, with the usual rise off the seasonal lows likely to be assisted by a return to normal output from the Canadian oil sands in Alberta.
 
 
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Monday, October 1,
 
 
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Alsumaria News / Baghdad 
suspended Kuwait export crude oil to the United States for the first time in nearly 25 years, according to the statistics of the information department at the US Department of Energy. 

The last time the United States did not buy oil from Kuwait was in 1992, when Kuwait's oil sector was hit by a Gulf War crisis. 

Kuwait has diverted from the United States to the most attractive Asian market, which accounts for 80 percent of Kuwait's oil exports, Bloomberg reported. Kuwait's high-quality oil is traded in Asian markets at $ 80 per barrel.

 
 
 
 
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  • yota691 changed the title to US to introduce draft law "OPEC" against the Organization "OPEC" oil
 
Tuesday, October 2,
 

 

 
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Baghdad - 
The United States of America announced on Tuesday that it is seeking to develop the "OPEC" project, which will be an anti-OPEC "oil". 

With oil prices rising to four-year highs, renewed interest in Congress is rekindling long-stalled proposals that would allow the United States to sue OPEC countries after it was seen as a slim chance of becoming law, Reuters reported .

 

 


A Senate subcommittee is due to hear testimony on the so-called monopoly oil production and export ban law, or NOPEC, which would lift the long-standing sovereign immunity of OPEC members from the United States taking legal action against them. 

The bill is aimed at changing the US antitrust law to allow OPEC producers to be sued for collusion, restricting oil or gas production or setting prices would violate the law and remove the sovereign immunity of US courts under the current law. 

Former US presidents have opposed the NOPC bill, but its chances of success may increase, given US President Donald Trump's repeated criticism of the Organization of the Petroleum Exporting Countries (OPEC), while some expect Brent crude to reach $ 100 a barrel soon. 

Informed sources said that Saudi Arabia is exerting pressure on the US government to prevent the adoption of the law.

Business groups and oil companies oppose the law because other countries may take countermeasures. 

OPEC controls production of member states by setting production targets. Prices rose 82 percent after the group's decision to cut output by the end of 2016 to $ 84 a barrel on Monday. Legislators are angered by the organization, saying it is hurting consumers again and interfering in free markets. 

The sources said Saudi Arabia, the world's top oil exporter, was concerned that Nubak might mimic the Justice Act against the sponsors of terrorism, which allows victims of the September 11 attacks in the United States to sue Riyadh. 

Justa's law is seen as a key factor in Saudi state-run Saudi Aramco's reluctance to list its shares in US markets in an initial public offering that has been postponed.

With Saudi Arabia investing about $ 1 trillion in the United States, Riyadh has a lot to lose if it becomes a law. Saudi Energy Minister Khalid al-Faleh has raised concerns about the law with US officials, including Energy Secretary Rick Perry, at private meetings held in recent months, two sources told Reuters on condition of anonymity. 

Earlier this year, the US Chamber of Commerce and the American Petroleum Institute informed Congress of their opposition to the bill, saying that the rise in US energy production had reduced OPEC's influence. 

Since the renewal of US sanctions on Iran in May this year, other countries, including Saudi Arabia, agreed to increase production. But that has not stopped the upward trend in prices.

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  • yota691 changed the title to Oil rises 1% on settlement amid fears of supply shortages
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