Guest views are now limited to 12 pages. If you get an "Error" message, just sign in! If you need to create an account, click here.

Jump to content
  • CRYPTO REWARDS!

    Full endorsement on this opportunity - but it's limited, so get in while you can!

Iraqi oil stopped and controversy affecting the domestic oil market


yota691
 Share

Recommended Posts

Posted: Monday - 2020-07-06 - 12:00 120

 

 

Iraqi oil stopped and controversy affecting the domestic oil market

 

Refinery: We have sufficient oil and other import sources

Fuel tankers, roadside nightmares

 Dr. Fathi al-Aghawat ,

 

 

stopping the export of Iraqi oil to Jordan, raises many questions about the causes and about the extent of the impact on the local oil derivatives market. Experts in the energy sector and in their conversation to $ excluded the presence of confusion in the local oil market with the exception of effects affecting the work of more than 400 tanks, including 250 Jordanian tanks, which means the failure of the livelihoods of their owners, in addition to the failure of other support occupations that will be affected as a result of the suspension of this fleet from work. The media spokesperson for the Ministry of Energy and Mineral Resources said in a statement to $ he said that the amount of imported Iraqi oil does not exceed 7% of the Kingdom's daily needs of crude oil, as these quantities are compensated by increasing the quantities imported from Saudi Aramco. He indicated that the Kingdom's need for oil derivatives is secured through the three derivative marketing companies, by importing from abroad or buying derivatives from the Jordanian Petroleum Refinery Company, which imports crude oil and repeats it. He added that the refinery production covers about 40 percent of the Kingdom's needs of the main derivatives, as the Jordanian oil refinery imports crude (Arab Light) oil from Saudi Aramco at a rate of 1.5 million barrels per month according to an agreement renewed annually. The expert in the energy and oil sector Hashem Akl denied that the Iraqi oil outage has any impact, and that we import 10 thousand barrels of oil out of daily consumption of about 70 thousand barrels per day, pointing out that this amount is simple and is not dependent on it as a source of influence, pointing to Iraqi oil has been stalled since the beginning of the Corona crisis and the closing of the borders with Iraq. And that closing the borders is the main reason for the continued interruption of Iraqi oil, pointing out that Jordan takes a discount from the international price of Brent at the lowest of $ 16 a barrel. Akel pointed to a previous statement by the Minister of Energy on the return of Iraqi oil, in conjunction with the opening of the border. He pointed out that the Jordanian oil refinery imported during the past months 2 million barrels of crude oil. In the context, the expert in the oil and energy sector, Engineer Amer Al-Shobaki, said that stopping the export of Iraqi oil to Jordan caused several problems, pointing to the suspension of work of more than 400 tanks, including 200-250 Jordanian tanks, and this means that the source of the livelihood of more than 200 Jordanian families who were dependent on these drivers was dependent. The tanks and the calculation of these drivers are on the list of unemployed people, and there are other support occupations that will be damaged as a result of the suspension of this fleet from work. Al-Shobaki called for clarifying the real reasons for stopping the supply if they were for force majeure and out of control, especially as what was issued by the Iraqi Oil Ministry that the collapse of oil prices is the reason. He pointed out that the Iraqi justification is illogical and unacceptable, indicating that even when oil prices reached 10 dollars a barrel, Iraqi oil was not cut off from Jordan, noting that Jordan at the time was bearing losses from buying Iraqi oil. Al-Shobaki said that the interruption of oil supply in this way is surprising from Iraq, because the price of a barrel of oil reached 43 dollars for Brent crude and OPEC basket was closed last Thursday at a price above 40 dollars a barrel for the first time in four months, and this is an appropriate and profitable price for Iraq to some extent. Although the oil supply agreement between Jordan and Iraq stipulates that the barrel be sold at a price less than Brent at $ 16, to cover transportation fees and the quality difference, it does not represent a loss or burden on the Iraqi side, because the transportation fees and the quality difference are also borne by Iraq while choosing to export Oil is transferred to other countries and transported from the Bebji refinery in the north to the port of Basra in the south. Al-Shobaki asked if there were provisions in the oil supply contract signed with Iraq that contained a penalty clause that would be executed in case of breach of the agreement. Economic writer Khaled Al-Zubaidi estimated the amount of oil imported from Iraq at about 8% of the kingdom’s daily oil needs, which amounts to 70 thousand barrels of oil per day, and added that its effect is limited on the refinery and that it bought and at preferential prices during the period of low world prices about 4 million barrels of crude oil as part of the reserve At the refinery. Al-Zubaidi expected a near return of Iraqi oil at its preferential price, which is around $ 20 a barrel, after deducting $ 16 a barrel. To that, the Jordan Petroleum Refinery confirmed that it has a high stock of crude oil and oil derivatives, whether it is located in Zarqa or its facilities in Aqaba, while the units operating inside the refinery site in Zarqa operate within their natural production capacity. The company said in a statement issued yesterday, that stopping Iraqi oil supplies to the Kingdom since the beginning of last May continues until now and has not caused any confusion with the company, given that the quantities received from Iraq are not large and the company has other import sources such as Saudi Aramco, and that what was received On some websites regarding the interruption of Iraqi oil supplies causing confusion to the company, it is not right. The company said that it received about four million barrels of crude oil during the months of April and May, where about a million barrels were stored on a floating ship that was previously chartered in addition to what was stored in Aqaba and Zarqa. It is noteworthy that the agreement with the Iraqi side stipulates that Iraq will supply Jordan with 10 thousand barrels of oil from the Bebji refinery to the Jordanian oil refinery in Zarqa.

  • Upvote 1
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
 Share

  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.