Oil rises 1% on settlement amid fears of supply shortages

[yota691]

Oil prices are on the rise due to supply concerns and concern for economic growth

 

Arab and international Economy News _ Baghdad Oil futures rose on mounting concerns about supply disruptions from the Middle East's important crude oil market, as investors and traders worry about prospects for global economic growth as US-China trade talks falter. Brent crude futures were $ 71 a barrel, up 38 cents or 0.5 percent from the previous close. US West Texas Intermediate crude futures were $ 61.73 a barrel, up 7 cents, or 0.1 percent, from the previous settlement price. Saudi Arabia said on Monday that two Saudi oil miners were among the ships targeted by "sabotage" off the coast of the United Arab Emirates, and condemned the attacks as an attempt to undermine the security of world oil supplies. Saudi Arabia and the UAE ranked first and third among the largest producers respectively in the Organization of the Petroleum Exporting Countries (OPEC), according to the latest Reuters survey. Markets are supported by Washington's push to cut Iran's oil exports to zero and reduce Venezuela's exports, where infrastructure problems also cause production to fall. The United States and China together account for 34 percent of world oil consumption in the first quarter of 2019, according to data from the International Energy Agency. Views 25   Date Added 13/05/2019

[yota691]

Evening DV..Gas Drop in the last week from $2.49 a gallon to $2.32 @ moment...

[mr.unlikely]

2 hours ago, yota691 said:

Evening DV..Gas Drop in the last week from $2.49 a gallon to $2.32 @ moment...

Sadly here in California its still around 4.35

[crane]

Why post this????????????? 2017,NEWS, is this not 2019?????????????????????

[yota691]

Oil rises to 71.23 dollars after targeting oil facilities in Saudi Arabia

Economy | 02:32 - 14/05/2019

 

 

 

Follow - up - the balance of News 
Oil prices rose on Tuesday, more than 1% after the attack, which targeted vital facilities in Saudi Arabia, one of the leading oil producers in the world. 
Brent crude was traded at $ 71.23 a barrel at 11:24 GMT, up 1.42% from the previous settlement price. 
US WTI crude was trading at $ 61.57 a barrel, up 0.87% from the previous close. 
The rise came after Saudi Energy Minister Khalid al-Faleh said that an attack by Dron aircraft targeted this morning, the two stations that inject oil through a pipeline from oil fields in the eastern region to the port of Yanbu on the west coast. 
Al-Falih added that Saudi Aramco will assess the damages and the two plants will be able to return them to their normal state, describing the attack as a "terrorist"
The minister also confirmed the continuous production and exports of Saudi oil without interruption

[yota691]

OPEC raises its demand for its oil in 2019 as production cuts continue

Economy | 06:23 - 14/05/2019

 

 

 

BAGHDAD 
(Reuters) - OPEC said on Tuesday that world demand for its oil would rise more than expected this year, as supply growth slowed from competitors including rock producers in the United States, adding that supply would be on the market if it did not increase production. 
"Production fell slightly in April, as US sanctions on Iran increased the impact of the OPEC-led supply control agreement," the organization said in its monthly report. 
OPEC, Russia and other independent producers cut production by 1.2 million bpd from January 1, for six months. Producers meet on June 25-26 to decide whether to extend the cut-off agreement

[yota691]

US Petroleum Institute oil inventories jump 8.6 million barrels last week contrary to expectations

 

energy Economy News / Follow-up ... Crude oil inventories in the United States rose unexpectedly last week, while inventories of gasoline and distillates increased, US Petroleum Institute data showed. Crude stocks jumped 8.6 million barrels in the week ending May 10 to 477.8 million barrels, compared with analysts' forecasts for a drop of 800,000 barrels. Crude inventories at the delivery center in Cushing, Oklahoma, increased 2.1 million barrels, the institute said. The Institute of Petroleum's data also indicated that the rate of consumption of refineries of crude increased by 15 thousand barrels per day. While gasoline stocks rose 567 thousand barrels, compared with the expectations of analysts in a poll conducted by Reuters to fall 299 thousand barrels. Data from the Institute showed distillate stocks, including diesel and heating oil, increased by 2.2 million barrels, compared to expectations of a million barrels. US crude imports last week rose 115,000 bpd to 7.8 million bpd. Number of Views 34   Date Added 15/05/2019

[Butifldrm]

Oil: Iraq is committed to OPEC decisions to reduce production

 

98 views

16/05/2019

Continue

The Ministry of Oil reiterated its commitment to OPEC decisions to reduce production, noting that the commitment of members strengthens the unity and strength of the Organization and achieve the balance and stability required for the world oil markets.

The former Undersecretary Fayadh Hassan al-Nu'ma in a statement followed by "Trend Press" on Thursday, "The rate of export of Iraq settled on 4 million and 400 thousand barrels per day, including the quantities produced from the fields of Kirkuk and Kurdistan, adding that stability will give more confidence in Iraq's policy "He said.

He added that the ministry plans to increase oil production and export capacity in the coming years with a focus on the southern fields, adding that the increase coincides with the conclusion of an agreement with international companies to invest in the South Integrated Project, aimed at developing fields and infrastructure of oil fields and development of export facilities.

The senior agent of the ministry pointed out to the cabinet's vote last week on the integrated southern Iraq project and briefed him on the ongoing negotiations between the Ministry of Oil and ExxonMobil and PetroJaina on this project, noting that the briefing of the cabinet gave the ministry the green light to continue negotiations and signing the preliminary principles of international investment soon. .

However, "the terms of the agreement are still under discussion, especially on some commercial matters for the sharing of final profits, pointing out that Iraq is not obliged to sign contracts when no agreement with the companies mentioned and will look for another international alternative at the same level."  

KKK

http://aletejahtv.com/archives/292541

[yota691]

16-05-2019 08:46 AM

A sudden surge in US oil inventories since 2017

 

 

Baghdad

US crude oil inventories rose unexpectedly last week, hitting their highest level since 2017 amid a pullout from the national emergency reserve, while gasoline inventories fell more than expected, the US Energy Information Administration said.

Crude inventories rose by 5.4 million barrels last week, compared to analysts' forecasts of a drop of 800,000 barrels, and about 1.8 million barrels per day were added to the supply through a draw from the US Strategic Petroleum Reserve.

The US Energy Department said last February it had offered up to 6 million barrels of low-sulfur crude oil for delivery in May of the strategic reserve, in a sale under a previous law to raise funds to modernize storage facilities.

Total crude inventories, excluding the Strategic Petroleum Reserve, rose to 472 million barrels last week, the highest level since September 2017, and about 2% above the 5-year average this time of year, according to data from the Energy Information Administration.

Data showed that oil stocks at the delivery center in Kashing, Oklahoma rose by 1.8 million barrels to 47.8 million barrels, the highest level since December 2017, and increased crude oil inventories, despite high rates of operation of refineries and the rise of exports.

US crude oil imports fell 106,000 bpd last week, with exports rising more than 1 million bpd to about 3.4 million bpd, slightly below record highs in February.

Crude oil consumption increased by 271,000 barrels per day (bpd), with refinery operating rates rising 1.6 percentage points to 90.5 percent of total energy, the highest level since February, according to data from the Energy Information Administration.

Gasoline inventories fell 1.1 million barrels, while analysts had forecast a 299,000 bpd decline. According to data from the Energy Information Administration, distillate inventories, including diesel and heating oil, rose 84,000 barrels, Million barrels.

[yota691]

Oil prices are heading for the biggest weekly gains since the beginning of April

17 May 2019 01:11 PM
Mubasher : Oil prices rose on Friday, heading for the biggest weekly gain since the beginning of last month.

Oil prices benefited this week from falling supply from the United States and OPEC, amid mixed signals about resolving the US-China trade dispute.

US oil production in the week ending May 10 fell for a second week in a row by 100,000 bpd to 12.1 million bpd.

The Organization of the Petroleum Exporting Countries announced this week that production fell slightly in April by 3 thousand barrels per day to 30.031 million barrels per day.

Investors are awaiting a meeting of OPEC's ministerial oversight committee in Saudi Arabia on May 19 to review production levels.

Baker Hughes is due to release data on crude oil platforms in the United States in the week ending today. 

Brent crude for July delivery rose 0.4 percent to $ 72.90 a barrel by 9:52 am GMT.

US crude futures for June delivery rose 0.7 percent to $ 63.31 a barrel, heading for weekly gains of more than 2.5 percent.

 

[yota691]

On 5/14/2019 at 12:01 AM, mr.unlikely said:

Sadly here in California its still around 4.35

It went to $2.29 yesterday..Good Morning DV

[yota691]

Saudi Arabia to set OPEC decision on oil production

Economy | 08:36 - 18/05/2019

 

 

 

Follow - up - the balance of News 
said the Saudi energy minister, Khalid al - Faleh, said that "OPEC" will not make a decision on oil production before the end of June. 
Al-Falih said on Saturday that he was not sure there was a shortage of oil supplies, noting that data from America still showed "substantial increases" in stocks. 
On the impact of recent developments in the Middle East on oil prices and supplies, Al-Faleh said that "OPEC" will be flexible on oil supplies, "and we will do what is right." 
"We have to keep the oil market in the direction of balance and the return of stocks to their normal level, but we will be also responsive."
It is noteworthy that the aircraft of a convoy of the Ansar Allah (Houthi), carried out on Tuesday an attack on two stations to pump oil in the pipeline, which is transporting crude from fields in the eastern region to the port of Yanbu on the west coast of Saudi Arabia.

[yota691]

Today, Iraq participates in OPEC meeting in Jeddah

Economy | 12:23 - 19/05/2019

 

 

 

The 14th meeting of the Joint Ministerial Committee to monitor the reduction of production between the Organization of Petroleum Exporting Countries (OPEC) and the countries outside it (OPEC +) to discuss the situation of the world oil markets, follow up the work of the Committee and the results of its decisions In previous meetings, and to know the commitment of OPEC countries and their partners to the decision to reduce production, and to make recommendations before the meeting (OPEC +) in June. 
The Joint Ministerial Committee is chaired by Saudi Arabia and Russia, and by the membership of Iraq, the United Arab Emirates, Kuwait, Algeria, Nigeria and Kazakhstan; the Committee works to monitor the production levels of the participating countries in order to stabilize the oil markets. 
The meeting will be attended by ministers of energy and petroleum in Oman, Bahrain, Venezuela, Libya, South Sudan, Azerbaijan, Brunei and OPEC.

[yota691]

OPEC holds a meeting to monitor the cut production agreement

By AhadNA3 View  19/05/2019 02:39 PM | Number of readings: 162

 

The fourteenth meeting of the Joint Ministerial Committee to monitor the reduction of production between the Organization of Petroleum Exporting Countries (OPEC) and countries outside the Organization of Petroleum Exporting Countries (OPEC) will be held in Jeddah on Sunday to discuss the situation of world oil markets, follow-up of the work of the Committee and the results of its decisions at previous meetings. The extent of the commitment of OPEC countries and their partners to the decision to reduce production, and to make recommendations before the meeting (OPEC +) in June.

The Joint Ministerial Committee is chaired by Saudi Arabia and Russia, and by the membership of Iraq, the United Arab Emirates, Kuwait, Algeria, Nigeria and Kazakhstan; the Committee works to monitor the production levels of the participating countries in order to stabilize the oil markets.

The meeting will be attended by energy and petroleum ministers from Oman, Bahrain, Venezuela, Libya, South Sudan, Azerbaijan, Brunei and OPEC.

The previous meeting of the Joint Ministerial Committee was held last March in the Azerbaijani capital of Baku, with the commitment of all participating countries to ensure the sustainable stability of the world oil markets, stressing the joint responsibility of all participating countries to maintain market stability. Finished 2

[Sage449]

I paid $3/gal mid-range. 

[Pitcher]

https://oilprice.com/Energy/Oil-Prices/The-Fear-Factor-Is-Back-For-Oil.html
 

The Fear Factor Is Back For Oil

By Irina Slav - May 19, 2019, 12:00 PM CDT

Saber-rattling in the Middle East and the continued deterioration in Venezuela have once again trumped considerations such as supply and demand in the fluctuations of global oil prices. Despite what looks like still ample global supply, both Brent crude and West Texas Intermediate have risen this week on the back of geopolitical fears.

The highlight of the week in this respect was no doubt the sabotage of four vessels off the Emirati coast that U.S. authorities said may have been caused by Iran. The sabotage reports were followed by reports of a Houthi attack on two Saudi oil facilities. Meanwhile the U.S. sent an aircraft carrier to the Middle East in what was overwhelmingly perceived as the next step in an escalation between Washington and Tehran.

This would have been enough to push prices a lot higher in just a couple of days as fears about supply from the Middle East are perhaps the most traditional of bullish factors for prices. However, this time the increase has been limited and this is because although they have been receiving less attention, oil fundamentals remain on the scene and they seem to be bearish for benchmarks right now although the situation remains highly volatile and this is working in bulls’ favor.

Take Venezuela, for example. According to OPEC’s latestMonthly Oil Market Report, Venezuela’s oil production surprisingly inched up in April, to 768,000 bpd from 740,000 bpd in March. However, a PDVSA report seen by S&P Global Platts has revealed that since the start of May, production has slumped by as much as 77 percent to 169,800 bpd because of the lack of tankers to carry the crude.

"The US sanctions have impacted the international market and have increased the cost of freight to Venezuela, the availability of shipowners to provide such services and the final cost of the products, placing PDVSA in an unfavorable and weak negotiating position," another report said. Related: U.S. Oil Rig Count Dips To 14-Month Low

There is also Libya, where the fight between the Libyan National Army of U.S.-backed General Khalifa Haftar and the UN-recognised Government of National Accord has reached a stalemate but it can yet affect oil production, which for the time being has been spared any new outages.

Yet on the other hand there is news from Canada that several oil producers will expand production this year despite pipeline constraints; assurances from Saudi Arabia and the UAE they would be happy to cover for any loss in Iranian oil; and, of course, booming oil production in the U.S., where, according to Rystad Energy, shale is now the second-cheapest source of new oil supply. That, combined with lower oil demand expectations from the International Energy Agency has been enough to keep a lid on prices, preventing a major spike and a consequent slump in demand.

That said, the oil market loves to fear wars and supply disruptions. This means that despite the fundamental factors that would suggest prices should be lower, the coming weeks would likely bring more uncertainty and more price rises until the dust settles in the Middle East or – always a possibility in the region – the situation escalates further and so do oil prices.

[Pitcher]

https://oilprice.com/Energy/Crude-Oil/Global-Oil-Shipping-Concerns-Rise-Over-Middle-East-Tensions.html
 

Global Oil Shipping Concerns Rise Over Middle East Tensions

By Tim Daiss - May 18, 2019, 2:00 PM CDT

While global oil markets are accustomed to factoring geopolitical uncertainty into oil prices, this kind of geopolitical fallout hasn’t been seen for a number of years. The world’s largest oil exporter, that still along with its OPEC+ partners, plays the role of global oil markets swing producer, is seeing an escalation of attacks on its oil export infrastructure and shipping.

Saudi Arabia said on Tuesday that armed drones had attacked two of its oil pumping stations. This came just two days after the sabotage of two oil tankers carrying Saudi oil near the UAE. Meanwhile, the U.S. military, amid an increasingly tense *** for tat exchange of words between Washington and Tehran, said it was braced for“possibly imminent threats to U.S. forces in Iraq” from Iran-backed forces.

Tuesday’s attacks on the pumping stations more than 200 miles west of Riyadh and Sunday’s attack on four tankers off the UAE have raised concerns that the U.S. and Iran might be inching toward military conflict. However, on Thursday Trump told media that he did not want a war with Iran.

Also on Thursday, a Saudi-led coalition carried out airstrikes on Sanaa, the Yemeni capital. The deadly airstrikes, that reportedly left six dead, came after Yemen’s Iran-backed Houthi rebels, who control the capital, claimed responsibility for the Tuesday drone attack on Saudi Arabia’s critical oil pipeline. All of this, of course, isn’t being lost on global oil markets which ticked up on Thursday by more than 1 percent. Global oil benchmark Brent crude futures ended the day’s session at $72.62/barrel, up 1.18 percent, while U.S. oil benchmark West Texas Intermediate (WTI) crude futures were up 1.37 percent, at $62.87/barrel, near its highest level in two weeks.

Global shipping concerns

Global oil traders aren't the only ones closely monitoring increased tensions in the Middle East, global ship insurers also considering their next course of action. On Thursday, London maritime ship insurers met to consider whether or not to increase shipping insurance rates for tankers in the Arabian Gulf.

However, thus far they have failed to reach a consensus. The Joint War Committee, which includes Lloyd's Market Association (LMA) members and representatives from other insurance providers, will meet again on Monday to discuss the matter further, said the LMA’s Head of Marine Underwriting Neil Roberts. Related: Peak Gasoline Vehicles Is Already Here

According to reports, the group doesn't have enough information yet to make a decision over rate possible increases. "At the moment there are not many facts or verifiable information (about the attacks on Sunday)," Roberts said on Wednesday. "There is no decision yet on whether to change the listed areas of enhanced risk.

There are a number of options, which include no change. He added that any changes would take seven days to come into effect. "Ships going into the Gulf already have to inform underwriters; the question is whether vessels within the Persian Gulf and operating there are additionally exposed,” he said. The last time The Joint War Committee updated the list of high-risk areas was June 2018.

Some are already anticipating an increase in shipping rates, including Asian oil refiners which rely heavily on Middle Eastern crude imports. Asia derives around 70 percent of its crude oil from the Middle East, while disruptions in oil production or shipping routes can severely affect Asian economies, including China and Japan, the world’s second and third largest economies, respectively.

Ashok Sharma, managing director of shipbroker BRS Baxi in Singapore, told Reuters earlier this week “there seems to be no increase in [insurance premiums] as of yet,” while he warned that if security in the Gulf region deteriorated, then insurers may be left with no choice but to increase marine insurance premiums.

[Pitcher]

https://oilprice.com/Energy/Oil-Prices/Bank-Of-America-90-Brent-May-Be-Around-Corner.html
 

Bank Of America: $90 Brent May Be Around Corner

By Julianne Geiger - May 18, 2019, 6:00 PM CDT

Bank of America Merrill Lynch (BofAML) warns that Brent crude oil could reach $90 per barrel stemming the new IMO rules regarding shipping fuels and a weaker dollar courtesy of a de-escalation in the US/China trade war, Reuters reported on Friday.

BofAML claims that the IMO rules regarding the allowable sulphur content, to take effect in 2020, could cause a spike in middle distillate demand, pressuring prices upward. Also pushing up prices could be the weakening dollar should the trade war between China and the United States simmer down.

In February, BofAML estimated that Brent crude would be trading within the $50 to $70 per barrel band through 2024, with prices “anchored” around $60 per barrel, citing rising US shale supplies and slowing oil demand growth. Shorter term, BofAML saw Brent rising to $70 per barrel citing tighter supply as Venezuela, Iran, Mexico, and OPEC produce less oil—some on purpose and some not.

Last May, BofAML warned that oil could rise as high as $100 per barrel this year. At that time, Brent was trading near $77.

Along with its $90 per barrel warning, BofAML said there was a risk that Brent could dip to $50 per barrel, if the trade war between China and the United States were to hurt consumer sentiment and lead to an economic downturn.

“With military tensions rising in the Middle East and trade tensions rising between the U.S. and China, we believe that chances of a tail event driving Brent crude to these price extremes (are) higher than what option markets are currently pricing,” BofAML said in a note on Friday.

Brent options show a 10% chance of prices heading north of $90, and just a 6% chance of it falling below $50 per barrel.

[Pitcher]

https://oilprice.com/Geopolitics/International/New-Middle-East-Proxy-War-Could-Jolt-Oil-Prices.html
 

New Middle East Proxy War Could Jolt Oil Prices

By Cyril Widdershoven - May 12, 2019, 6:00 PM CDT

U.S. sanctions on Iran are now really starting to bite. In contrast to what European media portray, Iran’s oil and gas exports are plunging. Tehran’s ability to supply its Asian customer base has been largely blocked, as Washington has decided not to extend the waivers given to China, India or others to keep on signing crude contracts.

U.S. president Trump still boasts that Iranian exports will be falling to zero, but some tankers are still going to slip through the cracks. ‘Illegal’ crude oil trade will be almost negligible, however, as Iran’s main customers have realized that Washington’s wrath will be real. The mullah regime in Iran also put its trust in a possible European answer, but European companies have chosen to be very cautious, and not to rely on the EU to mitigate potential U.S. sanctions against their operations. The more robust line taken by Washington, supported by Arab allies, seems to be working, as long as analysts are keeping an eye on Iranian oil sector options.

Oil analysts are also not yet worried by the negative impact of the sanctions as the global markets are still reasonably well supplied. This picture, however, could be changing extremely quick, if several underestimated factors begin to play out.

In contrast to the overall reporting, in which a direct Iran-U.S. confrontation seems to be in the making, reality shows that a surprising risk lies in Iraq. Analysts are focusing on the Arab/Persian Gulf, due to the announcement made by Washington that a significant U.S. naval force is steaming up to the region, partly to project U.S. military power and to counter a possible Iranian move to block the Strait of Hormuz. But the real conflict could play out in Iraq.

Washington admitted that it has been warned of possible attacks by Iraqi militias or IRGC proxy groups in Iraq on U.S. forces. The latter, as indicated by Tehran officials, would not only be in Iraq but potentially in the whole region. This proxy-war approach by Tehran has been expected for a long time, as Iran understands that a full-blown military confrontation with the U.S., and potentially its Arab allies, would not end well for the mullahs. Even if the conflict would be costly for both sides, the outcome is clear. Related: High-Cost Oil Faces Existential Risk

This strategy, as already has been employed by Iran’s IRGC troops in Syria, Lebanon, Yemen and parts of Iraq, would however be much harder to quell. Not only would the U.S. be forced to spread its forces, but low-level intensive military operations in mainly civilian areas would also constrain a U.S. response. It would also be very hard for Washington to compel European allies and the international community to form a united front against Iran.

Several analysts have already suggested that the first possible battleground of this looming conflict will be in Iraq. U.S. Central Command spokesman Urban reiterated previously that “the USCC has seen preparations by Iran and its proxies to attack U.S. forces in the region”.  U.S. forces based in Iraq are the easiest to attack. Iraqi Shi’a militias are spread over the whole country, and more often than not are operating under the flag of the Iraqi government.

Taking into account the presence of hardline fundamentalist groups in the area, Tehran can mount a strong force without officially taking part in attacks against the U.S. The same could be done in Syria or Yemen, targeting U.S forces and its allies in the area. By using Hezbollah or Hamas, Tehran would even be able to instigate a full-scale regional war, forcing Israel to take part in the conflict. Related: China Set To Miss Shale Gas Production Target By A Mile

Proxy wars in several countries in the Middle East could have a detrimental effect on global oil and gas markets. Any disruption to oil and gas flows cannot be countered by increased OPEC output or even U.S. shale oil. The market may seem well supplied, and inventories are still at relatively high levels, but this reality could soon change.

Until now, the market is behaving like an ostrich. By putting its head under the surface, and convincing itself that there is enough crude supply, or that ‘turning on the taps could rapidly add the missing barrels. The looming war in the Persian Gulf is only assessed on the merits of a US military invasion of Iran, which is unlikely to happen.

If the Iranian regime realizes it is heading for the brink, its proxies will do its bidding. On the global oil market, volumes are no longer the only factor of importance. It is quality and crude grades. These two factors are not being recognized, and it seems that traders and analysts believe Trump’s version of reality at present. OPEC’s spare production capacity is not sufficient, as Iran and Venezuelan heavy crudes are in short supply.

The U.S. is not able to substitute any of this in the short-to-mid-term. When the market hits the brick wall at the end of this year, this quality problem, in combination with increased instability in the Middle East, will not only create a nightmare scenario for consumers but could also push crude oil above the current $70-85 per barrel range. Proxy wars and sanctions could create the perfect storm for oil. A possible spike to $90 seems within reach.

[yota691]

OPEC is considering two options at its meeting next month

Editorial date: • 2019/5/19 20:34 • 133 times read

(Reuters) - Saudi Arabia and Russia are discussing two main prospects for the OPEC meeting and its oil producers in June and both options are proposing to increase output from the second half of 2019, two sources familiar with the issue said.

OPEC meets on June 25-26 in Vienna. 
The sources told Reuters that Russia wants to reduce the volume of reductions of 1.2 million barrels per day implemented by the so-called OPEC and its allies. 
The United States also urged OPEC to increase supply. 
The two sources said that OPEC's first possibility is to get rid of excessive commitment to the agreed reductions, which means an increase in production by about 800 thousand barrels per day. 
Excessive commitment came from a drop in exports and production by Iran and Venezuela over US sanctions and a cut in Saudi production, which came more than OPEC and its allies called for. 
The actual production cut by OPEC and its allies is about 2 million bpd.
One source said the other option was to ease the agreed cuts from 1.2 million barrels per day to 900,000 barrels, which means an increase in production by about 300,000 barrels per day.

[jeepguy]

Knowing Iraq ,  price of oil can be 200 per barrel , and still no R-V...

[10 YEARS LATER]

15 minutes ago, jeepguy said:

Knowing Iraq ,  price of oil can be 200 per barrel , and still no R-V...

 

Too right . . . they're just as happy to continue to steal Why bother doing anything to create a better Iraq or quality of life for their people.

[yota691]

Saudi Energy Minister: We discussed the continued reduction of production and things may change in June

 

Arab and international Economy News _ Baghdad Saudi Energy Minister Khalid Al-Faleh said the strong commitment to global oil cuts is unsustainable, although there is consensus to stay on course to reduce oil stocks. The main option discussed by OPEC and its allies is to continue production cuts in the second half of 2019, Change in June .  Al-Falih's remarks came on the back of the meeting of the joint ministerial committee of OPEC and its partners to monitor the production agreement in Jeddah, Saudi Arabia.  The minister said it would be preferable to continue production management in the second half of 2019, and that oil prices would not deceive anyone as it is believed that the global market is very weak. Al-Falih pointed out that demand for oil in Asia has recovered, while demand for Saudi oil in the US has declined, and oil production in June and May is expected to reach 9.8 million barrels per day. He said that if a decision was made in June to extend oil cuts, Saudi Arabia would remain within those production limits. He said the kingdom would respond to the needs of the oil market and that production in July would be within the OPEC ceiling. On the other hand, the minister said that the sanctions on Iran comes at a time when the market is well supplied, although no one knows what Iran produces or exports oil, in addition to that much of Iranian oil does not know its fate, which increases the uncertainty in market. Russian Energy Minister Alexander Novak said the participants had discussed the supply and demand balance and the option of reducing cuts and that OECD oil stocks were 13 million barrels higher than the average of 5 years.  Novak also noted that the global demand for oil below expectations, and it is unfortunate that the state of uncertainty affect the market. Opec, Russia and other independent producers, known as OPEC +, have agreed to cut production by 1.2 million barrels per day (bpd) from January 1 to 6 months, with the aim of halting stockpiles and subsidizing prices. The ministerial committee's meeting comes amid fears of a world-wide supply market. Views 22   Date Added 05/20/2019

[yota691]

Oil rises after OPEC meeting

 

Arab and international Economy News _ Baghdad Oil prices are on the rise in Asia on Monday due to tension in the Middle East and Saudi Arabia's commitment to a reduction in global oil stocks.  At about 03:45 GMT, the price of light sweet crude for the June delivery rose 90 cents to $ 66.63 a barrel in electronic exchanges in Asia.  Brent North Sea oil, the European delivery for July, rose $ 1.06 to $ 73.27.  Brent crude was down 41 cents from Thursday's close, and in New York, light sweet crude fell 11 cents.  A number of ministers from the Organization of Petroleum Exporting Countries (OPEC) and its partners met in Jeddah over the weekend to discuss a reduction of production. Saudi Arabia and the United Arab Emirates have expressed concern over rising global oil inventories, and oil exporters have confirmed their determination to ensure market stability despite strained Gulf conditions.  "There is consensus to stay on course to reduce oil stocks," Saudi Energy Minister Khalid al-Faleh said, and continue to work to strike a balance between supply and demand.  UAE Energy Minister Suhail Al Mazrouei said: "I do not think reducing the cuts is a correct step. We have noticed that inventories are increasing despite the decline of Venezuelan and Iranian oil exports."  "The apparent unity of Opec in Jeddah and the escalation of tensions in the Middle East are making Brent and light oil in strong positions," said Oanda Financial Consulting Group. Views 18   Date Added 05/20/2019

[yota691]

Are our Gulf oil installations fully protected from attacks? – Cyber attacks more damaging

2 days ago

 

Kamel Al-Harami Independent Oil Analyst

LAST week, four oil tankers in the Arabian Gulf waters suffered from acts of sabotage, and a drone attack led to the shutdown of Saudi Aramco’s pipelines. These two incidents raised the alarm about the extent our oil installations are currently protected and how much more it can be protected in the future against adverse military and technological elements.

 

This is the latest challenge that all our Arabian Gulf countries have to face. Can we safeguard oil installations that cover thousands of miles from the oil well head to the crude oil gathering centers, to various scattered refineries and all the way to the exporting facilities to be prepared for shipment in various export ports in the Arabian Gulf? We have to be alert 24/7 with all our tools, skills and experiences.

We now have to face the new challenge, which is hidden and non apparent, and causes damage to our computer systems as well as disrupts almost anything and brings the whole system down within seconds.

Cyber-attacks are the new methods of attack that our world is not fully prepared to tackle especially after the damage is done. The aforementioned two incidents did not increase or cause any increase in the oil price or lead to any panic in the oil market.

However, the oil did go up, but not like the previous years. This time the market is well balanced and there was neither any disruption to the oil flow to the outside world nor did it cause much delays. The movement of the oil tankers in the Gulf is the responsibility of all countries in the world.

About 60 percent of the oil being transported internationally, the quantity of which can reach up to 15 million barrels, are destined to Asian countries. The world would not allow such thing to happen in terms of preventing oil movements from the Gulf. Military actions are possible but owing to the past experience of the Iran-Iraq war, no such interruptions occurred.

The use of new technology via computers and cyber-attacks are more damaging, as there are no indications or warnings about such attacks, and they are noticed only after the damage is done. Last week’s events represent another sign that we have to be vigilant, and more work must be done to ensure the security of our systems and our oil installations. It is no longer just military action, but it represents a new form of hidden sophisticated technology to handle.

By Kamel Al-Harami Independent Oil Analyst 
email: naftikuwaiti@yahoo.com