Oil is touching 50 dollars due to the weak dollar and Middle East tensions

[yota691]

Oil is touching 50 dollars due to the weak dollar and Middle East tensions

17:25 - 01/04/2021

 

  

Information / follow-up.

Oil prices touched a multi-month high, today, Monday, thanks to expectations that OPEC and allied producers may restrict production at current levels in February, as the Corona virus pandemic keeps fears about demand in the first half high.

Prices rose in line with financial markets in general, while Brent crude reached $ 53.17 a barrel, its highest level since March 2020. US West Texas Intermediate crude touched $ 49.71, its highest since February 2020.

Brent crude futures for March delivery reached $ 52.97 a barrel, up $ 1.17, or 2.3%, while US West Texas Intermediate crude futures rose $ 1, or 2.1%, to $ 49.52 a barrel.

Tension over the situation in the Middle East also plays a role in the rally of Crude Oil. Acting US Defense Secretary Chris Miller said in a statement that the aircraft carrier USS Nimitz would remain in waters around the Arabian Sea after recent threats from Iran .

Virendra Chauhan, an analyst at Energy Aspects, said the broader overall momentum trends, particularly the weakening dollar and investor preparedness for a recovery in the oil sector this year, may provide support for oil prices.

"There may be some positive sentiment from the OPEC + study of supplies restriction in light of the virus showing its ugly face in the West," he added.

Mohamed Barkindo, OPEC Secretary-General, said on Sunday that while demand for crude is expected to rise by 5.9 million barrels per day to 95.9 million barrels per day this year, the organization expects many risks that threaten the descent of demand in the first half of 2021.

And prices ended 2020 20% lower than the average of 2019, as it is still recovering from the impact of global isolation measures, which reduced the demand for fuel, even at a time when major producers around the world agreed to implement record production cuts.

OPEC and allied producers including Russia, a group known as OPEC +, decided last month to increase production by 500,000 barrels per day in January, in anticipation of increased demand, and agreed to hold a monthly meeting to review production.

Analysts from Energy Aspects and RBC Capital say OPEC + is likely to keep production levels at their own from January to February. 25 S.

[yota691]

"OPEC +" agrees to continue the current levels of oil production during the next two months

 

 05 January 2021 10:03 PM

Mubasher: OPEC + agreed to extend the current levels of oil production over the next two months, but with voluntary cuts to production by Saudi Arabia.

The organization said in a statement issued after a meeting, today, Tuesday, that oil production will be increased by 0.5 million barrels per day during the next February and March.

OPEC + recognized the need to gradually return two million barrels per day to the market, with the pace set according to market conditions.

The organization agreed at the end of 2020 to increase oil production by 0.5 million barrels per day starting this month, and to amend production policy from cuts of 7.7 million barrels per day to 7.2 million barrels per day.

The meeting reiterated the need to continue to closely monitor market fundamentals, including non-OPEC + supply and its impact on the global oil balance and overall market stability.

On the other hand, Saudi Energy Minister Prince Abdulaziz bin Salman said that his country would make voluntary cuts of one million barrels per day on oil production for the next two months. Adding that Saudi oil production will be 8.125 million barrels per day, starting from February.

[yota691]

Updated .. Oil Jumps 5% upon Settlement After the "OPEC +" Agreement

 05 Jan 2021 10:56 PM
Mubasher: Oil prices expanded to about 5 percent upon settlement of transactions today, Tuesday, to exceed "Brent" $ 53, after the "OPEC +" agreement on production policy.

OPEC + reached an agreement on continuing to increase oil production by about 500 thousand barrels per day during the next two months as it is.

At the end of 2020, OPEC + decided to increase production by 0.5 million barrels per day from January, with the alliance meeting monthly to discuss production levels.

Crude prices also received support as Saudi Arabia agreed to voluntary cuts to oil production by about one million barrels per day over the next two months.

Upon settlement, the price of US NYMEX crude futures for February delivery rose 4.9 percent to $ 49.93 a barrel.

By 7:50 pm GMT, the price of futures contracts for benchmark Brent crude for March delivery rose 4.9 percent to $ 53.63 a barrel.

 

[yota691]

Oil futures rise

Thursday 07 January 2021 45

 

 

 Capitals: agencies

 

Crude oil futures rose during the Asian session, overlooking the rebound in the dollar index from its lowest since April 17, 2018, according to the inverse relationship between them.

On the cusp of economic developments and data expected by the US economy, which includes the disclosure of the Energy Information Administration report for the week that elapsed on the first of January, the shrinkage of the deficit reflected to about 2.8 million barrels compared to about 6.1 million barrels in the previous weekly reading, and hours after the expiry of the actual The OPEC + Joint Ministerial Monitoring Committee meeting.

Nimex crude oil futures for next February delivery increased by 0.48 percent to trade at 50.06 dollars a barrel compared to the opening at 49.82 dollars a barrel, noting that the contracts started the session on a falling price gap after trading ended Tuesday at levels of 49.93 dollars a barrel.

Futures contracts for Brent crude prices for next March delivery rose 0.73 percent to trade at $ 53.91 a barrel compared to the opening at $ 53.52 a barrel, knowing that the contracts also started trading on a falling price gap after trading ended Tuesday at $ 53.60 a barrel.

[yota691]

OPEC announces an increase in production thanks to 7 countries, most notably Iraq

Thursday 14, January 2021 20:44 | EconomicalViews: 529

Baghdad / NINA / The Organization of Petroleum Producing Countries "OPEC" confirmed, on Thursday, that the production of the members of the organization (13 members) increased by 278 thousand barrels per day last December, amid an increase in the production of 7 countries, most notably Libya and Iraq.

The organization stated in its monthly report that its production rose to 25.362 million barrels per day during the past month, compared with 25.083 million barrels per day in the previous November.

The average daily OPEC production during 2020 was about 25.647 million barrels, compared to 29.337 million barrels per day during the previous year, a decrease of 12.6 percent due to the drop in fuel demand associated with the outbreak of the Corona pandemic.

According to the report, 7 countries increased their production during the past month, led by Libya, which raised its production by 136 thousand barrels per day, bringing its production to 1,224 million barrels.

Libya has fully regained production in recent months, after a nine-month hiatus since the beginning of 2020, but on September 18, Khalifa Haftar announced the lifting of the blockade on Libyan oil fields and facilities.

Iraq and the UAE raised their crude production by 76 thousand and 63 thousand barrels per day, respectively, while Equatorial Guinea increased its production by 24 thousand barrels, Iran also increased its production by 20 thousand barrels, and Venezuela 17 thousand barrels.

On the other hand, 6 countries reduced their production last December, most notably Nigeria by 28,000 barrels, and Angola and Congo by 14,000 barrels each.

As for Saudi Arabia, the largest oil producer in OPEC, the report showed a decrease in its production by only two thousand barrels per day during the past month, to reach 8.964 million barrels.

Oil producers in the "OPEC +" group, led by Saudi Arabia and Russia, reached an agreement for a limited reduction in production cuts during February and March.

Saudi Arabia announced a voluntary production cut by one million barrels per day in February and March, reinforcing the agreement of the "OPEC +" alliance to maintain the level of production during the next two months at roughly the same level in January. / End 8

[yota691]

Iraqi Oil Minister Holds Kurdistan Region of Low Compliance with the "OPEC +" Agreement

The Iraqi Oil Minister confirmed that Saudi Arabia’s decision contributed to stabilizing prices, and an expected price of $ 57 a barrel

 January 15, 2021 11:06 AM

Mubasher:  Ihssan Abdul-Jabbar, the Iraqi Minister of Oil, expects that oil prices will stabilize at $ 57 a barrel in the first quarter of 2021.

Abdul Jabbar added, in an interview with official television in Iraq on Thursday evening, that reducing Saudi voluntary production of one million barrels per day would help stabilize the market.

 

The Iraqi Oil Minister said that his country was in talks with OPEC and the oil producers allied with it to allow him to postpone compensation for a previous production increase, indicating an understanding of the Iraqi situation and its financial crisis.

Abdul-Jabbar clarified that the request for a postponement does not mean that Iraq will not comply with its obligations regarding the OPEC + agreement and that it is committed to reducing its production to maintain market stability.

The Iraqi Oil Minister attributed his country's recent low level of compliance, amounting to 79%, from the reductions promised in the framework of the OPEC + agreement, to the failure of the Iraqi Kurdistan region to adhere to its share of production cuts.

Abdul-Jabbar indicated that the region did not abide by a preliminary agreement with the central government to reduce its production by 20%, by approximately 80 thousand barrels per day, adding that it continued production at 430 thousand barrels per day.

[blueskyline]

Thank You Yota .GM DV's .....Looks like a very promising New Year for Iraq 🇮🇶 

[yota691]

Iraq raises OPEC production

•  Time: 01/14/2021 19:45:48
•  
•  Read: 4,862 times

  

{International: The Euphrates News} The Organization of Petroleum Producing Countries "OPEC" said, Thursday, that the production of members of the organization (13 members) rose by 278 thousand barrels per day during last December, amid the increase in production of 7 countries, most notably Libya and Iraq.

The organization stated in its monthly report that its production rose to 25.362 million barrels per day during the past month, compared with 25.083 million barrels per day in the previous November.
The average daily OPEC production during 2020 was about 25.647 million barrels, compared to 29.337 million barrels per day during the previous year, a decrease of 12.6 percent due to the drop in fuel demand associated with the outbreak of the Corona pandemic.
According to the report, 7 countries increased their production during the past month, led by Libya, which raised its production by 136 thousand barrels per day, bringing its production to 1,224 million barrels.
Libya has fully regained production in recent months, after a nine-month hiatus since the beginning of 2020, but on September 18, Khalifa Haftar, supported by Russia and the UAE, announced the lifting of the blockade on Libyan oil fields and facilities.
Iraq and the UAE raised their crude production by 76 thousand and 63 thousand barrels per day, respectively, while Equatorial Guinea increased its production by 24 thousand barrels, Iran also increased its production by 20 thousand barrels, and Venezuela 17 thousand barrels.
On the other hand, 6 countries reduced their production during last December, most notably Nigeria by 28,000 barrels, and Angola and Congo by 14,000 barrels each.
As for Saudi Arabia, the largest oil producer in OPEC, the report showed a decrease in its production by only two thousand barrels per day during the past month, to reach 8.964 million barrels.
The oil producers of the "OPEC +" group, led by Saudi Arabia and Russia, reached an agreement for a limited reduction in production cuts during February and March.
Saudi Arabia announced a voluntary production cut by one million barrels per day in February and March, reinforcing the agreement of the "OPEC +" alliance to maintain the level of production during the next two months at roughly the same level in January.
Ammar Al-Masoudi

[yota691]

Iraq: We will not negotiate with "OPEC +" regarding our share of compensation for the extra production

(Reuters)
January 16, 2021
1:24 AM
101   
 
In a statement, Iraqi Oil Minister Ihssan Abdul-Jabbar affirmed the country's commitment to OPEC +’s decision to reduce production and compensate for its share of excess production.

The minister added that Iraq has no intention of negotiating with "OPEC +" members regarding its share of oil production or compensation for the excess production.
 

[rvmydinar]

On 1/5/2021 at 6:46 AM, yota691 said:

Oil is touching 50 dollars due to the weak dollar and Middle East tensions

price of oil reach $50, it is good. if the price of oil can increase to let's say over $100, this is even better because it can improve economic condition for all iraqi citizens inside country of iraq only I because iraq can pay off the debts and monthly salary and other bills ), on the other hand, the higher price of oil has got nothing to do with rv. again, when the rv comes, dinar investors can exchange dinar for dollars in the usa ( dinar investors can"t exchange dinar for dollars inside country of iraq ) , and then all dinars will be put back and saved in the us reserves and the most important is  dinars will not be brought back to iraq. actually, iraq can rv the iqd at anytime they want. may be iraq has look and look for the best lucky day and place to rv.  i could be wrong though.

[yota691]

 

OPEC: Iraq is the country with the most increase in its oil production after Libya within a month

 

•  

 2021-01-16 05:53

 

Shafaq News / Today, Saturday, OPEC announced that Iraq ranked second among the most member states that raised its oil production in the organization last December.

 

The organization said in its monthly report, seen by Shafaq News Agency, that "the production of the 13 member states of the Organization of Petroleum Exporting Countries" OPEC "increased last December, reaching an average of 25.362 million barrels per day, an increase of 279 thousand barrels per day from the levels of November 2020, which amounted to 25.083 million barrels per day. "

 

She added, "The increase in OPEC production came from Libya, whose production amounted to 1,224 million barrels per day, with an increase of 136,000 barrels from the previous month, in addition to the UAE, with an increase of 63,000 barrels from the previous month."

 

It indicated that "Iraq also increased its oil production in December, as its average production reached 3.848 million barrels per day, an increase of 76 thousand barrels per day compared to last November, when production reached 3.772 million barrels per day."

 

Iraq is considered one of the founders of OPEC in 1960, and it is one of the most important producing countries within the organization, as it comes second after Saudi Arabia.

[yota691]

9 hours ago, rvmydinar said:

if the price of oil can increase to let's say over $100

IMO it will never reach $100...Oil is so plentiful and Oil reserve's countries are running out of place to store it...

 

Oil production in OPEC countries increased by 280,000 barrels per day in December

16:17 - 01/14/2021

 

  

Information / follow-up.

Today, Thursday, January 14, a monthly report of the Organization of Petroleum Exporting Countries (OPEC) revealed that oil production by OPEC countries increased by 280,000 barrels of oil per day last December.

The monthly report of the Organization of Petroleum Exporting Countries announced that the organization's countries increased their oil production by 280,000 barrels per day on a monthly basis, bringing production to 25.36 million barrels per day.

At the same time, the organization gave a negative evaluation of the level of implementation of the OPEC + deal, which reached 102 percent, compared to 104 percent in November 2020.

The organization’s report stated: “The average production of 13 OPEC countries reached 25.36 million barrels per day in December 2020.

This represents an increase of 0.28 million barrels per day compared to November.

Production also increased mainly in Libya, Iraq and the United Arab Emirates, and decreased in Nigeria, Congo and Angola. 25 S.

 

 

 

8.96 million barrels per day of Saudi crude oil production during December

Drums Saudi points

 January 14, 2021 3:54 PM

Riyadh - Mr. Jamal: The Kingdom of Saudi Arabia's production of crude oil decreased slightly during the month of December of 2020 on a monthly basis, amid an increase in OPEC production under pressure from the increase in production of several countries, most notably Libya and Iraq .

According to the data of the monthly report issued by OPEC, which relies on its secondary sources, which Mubasher reviewed today, Thursday, crude oil production decreased to a level of 8.964 million barrels per day, compared to 8.966 million barrels per day in November , with a decline of two thousand Barrels per day .

On the other hand, OPEC production increased during the month of December 2020 by 278 thousand barrels per day, to reach 25.362 million barrels per day, compared to 25.083 million barrels per day in the previous month .

The rise in OPEC production came; As a result of increasing Libya's production by 136 thousand barrels per day to 1.224 million barrels per day, compared to 1.088 million barrels per day last November.

Likewise, Iraq's production increased by 76 thousand barrels per day, bringing total production to 3.848 million barrels per day, compared with 3.772 million barrels per day in the previous month (November).

Saudi Arabia's production of crude increased, according to OPEC data, which is based on direct contact with countries in December 2020, by 8 thousand barrels per day, to reach 8.980 million barrels per day, compared to the previous month's production of 8.972 million barrels per day .

[yota691]

Brent drops to 55.96 dollars a barrel, and the American median is down to 53.28 dollars a barrel

 

- 01-15-2021 10:53 AM - Number of readings: 63,162

 

Brent crude recorded a decline of 0.8 percent, or $ 55.96 a barrel, according to a Reuters report. 

 

US West Texas Intermediate crude fell to $ 53.28 a barrel, after increasing more than 1 percent in the previous session. 

 

Brent is heading for its first weekly decline in three weeks.

[yota691]

 

OPEC oil revenues fall to their lowest level in 18 years

 

•  

 2021-01-16 05:21

 

 

Shafaq News / The US Energy Information Administration revealed, on Saturday, that OPEC oil revenues fell to the lowest level in 18 years, attributing the reason to the outbreak of the Corona epidemic and its economic repercussions.

 

In a report seen by Shafaq News Agency, the administration said that OPEC's revenues from exporting crude oil for 2020 will drop to $ 323 billion, and this will be the lowest level of revenue in 18 years compared to $ 595 billion in oil revenues for 2019.

 

It indicated that the largest part of OPEC's collective oil revenues for the year 2020 will be to Saudi Arabia, as it is the largest source in the organization.

 

The administration stated that the total Saudi oil revenues for 2019 amounted to 202 billion dollars, which is more than a third of the total revenues of OPEC, noting that last year's revenues will be affected by the epidemic, like those of other OPEC exporters.

 

The administration expected that the per capita share of OPEC countries from net oil export revenues for the past year would decrease to 638 dollars, down from 1.201 dollars in 2019 and 1.476 dollars in 2018.

 

The administration did not rule out that the decline in revenues could harm the financial budgets of member states that rely heavily on oil sales to import goods, finance social programs and support public services.

 

But OPEC itself is cautiously optimistic about the near future, despite the large deficit and the increase in loans to support budgets, and the organization expects oil demand to begin to recover this year.

 

In its latest monthly report on the oil market, the organization expected that oil demand this year will increase by 5.9 million barrels per day, to reach 25.9 million barrels per day.

 

Once again, the biggest driver will be the Asian economies, where demand is expected to jump by 3.3 million barrels per day from 2020 when OPEC estimated its decline by as much as 9.8 million barrels per day.

[yota691]

3 JAN, 17:53

Russia, OPEC plan to discuss need to increase oil production in February

The previous OPEC+ ministerial meeting took place on December 3

MOSCOW, January 4. /TASS/. Ministers of the OPEC+ countries will hold two meetings on Monday, where they will decide whether to continue recovery of oil production in February by another 0.5 mln bpd. The emergence of a new strain of coronavirus is exacerbating an already fragile situation in the oil market, OPEC said. According to TASS sources, not all members of the alliance unequivocally support increasing production in February, believing that it is necessary to wait at least a month to assess the changed situation.

The previous OPEC+ ministerial meeting took place just a month ago - on December 3. Then they agreed to increase oil production starting from January, not at once by 2 mln bpd, as previously planned, but gradually. The new plan provides for a smooth increase in oil supply by no more than 0.5 mln bpd per month. Moreover, each subsequent increase in production must be approved at a separate meeting. On Monday, ministers will discuss the feasibility of such move in February.

Ministers of the OPEC+ Monitoring Committee, which includes eight out of 23 member countries, will be the first to gather via video conference on Monday. The committee chaired by Russian Deputy Prime Minister Alexander Novak and Saudi Arabian Energy Minister Prince Abdulaziz bin Salman will assess the situation on the oil market based on the forecast prepared by the experts of the technical committee meeting the day before. As a result, ministers can make a recommendation to the alliance countries for further action. OPEC+ members in a large composition will consider it on the same day, at 17:00 Moscow time.

According to TASS sources, there is still no consensus in OPEC+ on the advisability of raising production by another 0.5 mln bpd in the coming month. Ministers are concerned about a new strain of coronavirus.

 

 

"In my opinion, now, because of the new strain, it is too early to talk about an increase in production. We must wait at least a month, and only then assess the situation," representative of one of the delegations to OPEC told TASS.

According to OPEC Secretary General Mohammed Barkindo, whose words were published on the organization's website on Sunday, the more dangerous coronavirus mutation and its rapid spread are a reminder of the fragile current global situation. And although OPEC still expects oil demand to grow by 5.9 mln bpd in 2021, it is not yet clear how the social and work habits acquired during the long quarantine will affect people's mobility, Barkindo concluded.

[yota691]

Russia raises oil production to 150 thousand barrels per day

Monday January 18, 2021 6

 

 Moscow: capitals 

Russia raised its production of oil and gas condensate to 150,000 barrels per day by 10.19 million barrels per day from January 1 to 14 of the same month compared to December, as international producers eased restrictions on production, according to a source who spoke to Reuters.

According to official data, oil and gas condensate production reached an average of 10.04 million barrels per day in December.

Russia said it would raise its crude oil production in January by about 125,000 barrels per day, with the easing of restrictions imposed by the "OPEC +" group for oil producers.

The global "OPEC +" agreement excludes condensate, a type of light oil, of which Russia pumps between 700 and 800 thousand barrels per day on average. The Russian Energy Ministry did not respond to a request for comment. Russia is set to increase its oil production by 65,000 barrels per day, starting in February

Next.

[nannab]

Thank ya Yota  

[yota691]

Parliamentary Finance: We will not change the average price of oil exports in the budget

Monday 11 January 2021 - 19:01

Baghdad - Awa - Noor Al-Zaidi

The Finance Committee of the House of Representatives confirmed today, Monday, that it has not changed the calculation of the rate of the exported oil price in the draft federal budget bill for the current fiscal year 2021, despite the high oil prices.

 

Efforts to restore Iraq's oil share in OPEC +

Monday January 18, 2021 61

 

  Baghdad: Omar Abdul Latif

 

The Committee on Oil, Energy and Natural Resources in the House of Representatives revealed that there are efforts to restore Iraq’s share in OPEC +.

Committee member Bahaa Al-Din Al-Nouri told Al-Sabah: Iraq seeks to restore its share in the (OPEC) organization after reducing it, indicating that "there are calls for the Ministry of Oil to make more efforts to restore that share that could revive Iraq economically."

He added that "Iraqi diplomacy will be based on the fact that the share of Iraq was being met by the Gulf states since the imposition of the embargo on Iraq in 1991 until 2003," indicating that "the talk will be about increasing Iraq's share of exports, not reducing it."

Al-Nouri added, "The member states of (OPEC Plus) have agreed to reduce the reduction by up to 500 thousand barrels per day starting from this January," noting that "this could contribute to reviving the economy or providing financial liquidity," noting that "the delegation "The government negotiating with the return of Iraq’s share was not successful in previous attempts due to lack of knowledge or lack of understanding, and therefore the country is the one who paid a dear price for that from a financial crisis.

Alaa al-Yasiri, Director General of the National Oil Marketing Company (SOMO), confirmed that the "OPEC +" agreement had a positive effect on Iraq.

Al-Yasiri said in a press statement: "The quantities of oil exported from the Kurdistan region through the Turkish port of Ceyhan amount to 430 thousand barrels per day," noting that "the company has the ability to absorb quantities of the region's oil for the purpose of export," and he explained that "after the (OPEC) agreement. Specifically, this month, the quantities of exported oil reached 2.9 million barrels per day, with revenues of 4.2 billion Dollars ”.

[yota691]

Bahr Al-Ulum: Oil prices will range between 55 and 60 dollars per barrel

Thursday January 21, 2021 123

 

 Baghdad: Tariq Al-Araji

 

Former Oil Minister Dr. Ibrahim Bahr Al-Ulum expected that oil prices in global markets would range between 55 and 60 dollars per barrel, stressing that Iraq would have a strong political and diplomatic move commensurate with its strategic position and its precautions to ensure its rights in OPEC and outside it.

Bahr Al-Ulum said in an interview with Al-Sabah: “The rises currently occurring in the oil market are fragile rises that are not based on the foundations of supply and demand, as prices are currently controlled by several factors that summarize the Corona pandemic and the ability of the World Health Organization and countries to accelerate the provision of vaccines and give psychological doses Markets will gradually return to normal, in addition to the new US President Joe Biden's policy and what it will produce regarding shale oil production, will it be contrary to Trump's direction, and what will be his position on the climate treaty and reducing emissions, and the other factor is the ability of (OPEC) and (OPEC Plus) to achieve Face these challenges. "

He added, "The stability of oil at a reasonable price for producers and consumers will take not a little time, and perhaps in the fall of this year we can see features of some stability in the oil market, ranging between $ 55 and $ 60, but this ceiling will contribute to stimulating the production of shale oil, and thus competition will return to countries." The three president represented by America, Russia and Saudi Arabia. 

Bahr Al-Ulum expressed his belief that "it will be difficult to maintain an understanding in (OPEC Plus) between Russia and Saudi Arabia unless it enters Iraq as a third element between them, as it is the second producer in (OPEC) and has the ability to balance, because this bilateral equation can determine the future of the oil market, And Iraq must be able, with its negotiating capabilities and production, to play the role of negotiator, ”stressing that“ Iraq's role in (OPEC) is marginal, especially as it has become a company and not an organization that preserves the interests of its members, and there is no collective decision in it looking for the interests of this organization as stated in the objectives of ( OPEC) and therefore the decisions taken must be for the benefit of its members. "

The former oil minister called for "Iraq to take its real role in the (OPEC) organization," wondering: "What will Iraq's position be if Iran and Venezuela return to oil production?" New to oil production? Therefore, Iraq needs strong political and diplomatic action commensurate with its strategic position and its reserves. "

[yota691]

A US investment bank reveals two factors that will suppor t the oil market in 2021

14:02 - 01/22/2021

 

  

The information / Baghdad ..

Investment bank Goldman Sachs said that the new US administration’s plans to inject huge financial stimulus, and not to rush too much to lift sanctions on Iran , are two positive factors that will support oil and gas prices.

The bank said in a note: "In our estimates, a $ 2 trillion stimulus over the period 2021-2022 will boost US demand by about 200,000 barrels per day."

US President Joe Biden proposed a stimulus package worth 1.9 trillion dollars to stimulate the economy and accelerate the distribution of vaccines to control Covid-19, which has affected global demand for oil.

Oil prices fell on Friday due to fears that new restrictions to combat the pandemic in China will curb demand for fuel in the world's largest importer of crude.

The bank also said that the Biden administration is considering strengthening and prolonging nuclear restrictions on Iran , and that the country's oil exports will remain modest this year and at 0.5 million barrels per day in the second half of 2021.

White House spokeswoman Jane Psaki said the Iran issue will be part of President Joe Biden's early consultations with his foreign counterparts and allies.

The bank said, "The delay in the full return of Iran's production will reinforce our optimistic outlook for oil prices, as we already expect a scarcity in the oil market in 2022 with the decline in OPEC's spare capacity."

[currenzcraze]

Oil is going to sky rocket now that Biden is eliminating the fossil fuel industry here in the US.

[yota691]

expectations of cracks appearing "within opec +" due to the uae and saudi arabia

Author: AhadNA3 On 01/22/2021 - 2:31 PM  367

In the wake of the Saudi-Emirati dispute, the American Citibank bank expected a renewed dispute between oil producers in the OPEC + alliance during 2021.
The American bank said Thursday, in a report on oil expectations, that the markets are still suffering due to excess supply and political differences. Within the OPEC + group.
Last April, the "OPEC +" alliance, led by Saudi Arabia and Russia, reached an agreement of unprecedented cuts in production by 9.7 million barrels per day, from the beginning of May until the end of July.
The coalition has reduced production cuts to 7.7 million barrels per day from early August until the end of 2020, and to 7.2 million barrels as of January this year.
And the American bank continued: "Even if discipline is preserved during 2021, differences between the UAE and Saudi Arabia over production policy may appear again at any time."
And last December, the UAE informed its OPEC + counterparts that despite its support for an extension of the existing cuts, it would find it difficult to continue deep production cuts in 2021.
The report stated that the recent OPEC + agreement provides the oil industry with a recovery. But the problems may flare up later, adding that «OPEC +» continues to manage production on a monthly basis, but cracks may appear threatening the agreement.
The report argues that it will be difficult to keep the group of producers together, when the UAE has an increasing production capacity, along with less Russian commitment. The report suggested that compliance will decline further in the coming months, with gradual improvement in demand.

[blueskyline]

https://finance.yahoo.com/amphtml/news/iraq-says-lower-oil-output-110319892.html......

Iraq to Lower Oil Production to Compensate for OPEC Breach

Khalid Al-Ansary

January 24, 2021, 7:43 am

(Bloomberg) -- Iraq plans to cut oil output in January and February to make up for breaching its OPEC+ quota last year, according to the state company that markets the nation’s crude.

OPEC’s second-biggest producer will pump around 3.6 million barrels daily for the two months, according to Ali Nizar, the deputy head of SOMO. That would be the lowest level since 2015 and compares with around 3.85 million in December, according to data compiled by Bloomberg.

Exports, including those from the semi-autonomous northern region of Kurdistan, will be slightly more than 3 million barrels a day during the period, Nizar said in an interview in Baghdad, the capital. The figure for last month was almost 3.3 million.

Baghdad’s ability to meet these targets depends on whether the Kurdistan Regional Government agrees to reduce supplies from fields under its control, Nizar said. The central government has complained in the past that it can’t control Kurdish production.

The Organization of Petroleum Exporting Countries and partners such as Russia, an alliance known as OPEC+, agreed in April to slash output and bolster oil prices, which had been hammered by the spread of the coronavirus. Saudi Arabia criticized Iraq and other members including Nigeria for pumping above their caps on several occasions and called on them to make compensatory cuts.

Iraq is still committed to the OPEC+ deal, which runs until next year, Nizar said.Following Saudi

Its decision to pump less oil follows a similar move by Saudi Arabia earlier this month. With the virus still raging, the kingdom said it would reduce production in February and March by 1 million barrels daily, a surprise move that caused oil prices to rise.

Tanker-tracking data suggest Iraq is already selling less crude. Exports slipped to just over 3 million barrels daily in the first 15 days of January, according to data compiled by Bloomberg.

Benchmark Brent crude has almost tripled to around $55 a barrel since OPEC+ begun restricting supplies. But it’s still far short of what Iraq needs to balance its budget and bolster its economy. The International Monetary Fund forecast that Iraq’s gross domestic product would contract 12% in 2020, more than that of any other OPEC member under an output quota.

Storage in Asia

Iraq is mulling whether to build or use oil-storage facilities in Asia to reduce the risk of it not being able to send crude to its main customers, according to Nizar. Persian Gulf neighbors Saudi Arabia and the United Arab Emirates already stockpile some of their crude in Japan, South Korea and India.

Most of Iraq’s oil has to pass through the Strait of Hormuz. Iranian forces have targeted tankers traversing the chokepoint several times since early 2019 and threatened in the past to block it.

Iraq plans to export an average of 1.1 million barrels a day of its new Basrah Medium grade, Nizar said. The first cargo was shipped this month.

Prime Minister Mustafa Al-Kadhimi’s cabinet is yet to sign off on a multibillion-dollar supply deal with China’s Zhenhua Oil Co., according to Nizar. Under the terms, SOMO will supply roughly 130,000 barrels a day of crude to for up to five years, with Zhenhua paying for the first year upfront.

The pre-payment oil contract, a first for Baghdad, underscored the government’s need for cash.

 

[WheresmyRV?]

Starting to see 80 to 100 bucks a barrel coming by summer.

[yota691]

Iraq reduces its oil production ... Sumo explains

•  Time: 01/24/2021 21:29:17
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•  Read: 2,925 times

  

{International: Al Furat News} Iraq is seeking to compensate for the previous non-compliance with the OPEC + agreement to reduce oil production this month and next, according to the national oil company {SOMO}, which markets the state's crude.

The company's deputy director, Ali Nizar, said that OPEC's second largest oil producer would pump about 3.6 million barrels per day during the two months, compared to about 3.85 million in December, according to data compiled by Bloomberg.
Nizar said in a press statement that "exports, including from the Kurdistan region, will be slightly higher than 3 million barrels per day during that period, while the number during the past month was about 3.3 million barrels per day."
And that Baghdad's ability to meet these goals depends on the approval of the regional government to reduce supplies from the fields it controls, and the central government has complained in the past that it cannot control Kurdish production.
The Organization of Petroleum Exporting Countries and its partners such as Russia, an alliance known as OPEC +, agreed in April to reduce production to support crude prices that have been affected by the spread of the Corona virus, and Saudi Arabia criticized Iraq and other members, such as Nigeria, for pumping oil higher than the quotas set in many. Of the times I asked them to make compensatory cuts. Nizar stressed that Iraq is still committed to the OPEC Plus agreement, which is in effect until next year.
The decision to pump less oil comes after a similar move by Saudi Arabia early this month, and in light of the continuing outbreak of the virus, the Kingdom said it would voluntarily reduce production in February and March by one million barrels per day, a surprise move that helped raise prices.
Container tracking data collected by "Bloomberg" indicates that Iraq is already selling less crude, and exports have slipped to just over 3 million barrels per day in the first 15 days of January.
And benchmark Brent crude prices have nearly tripled to about $ 55 since OPEC Plus began restricting supplies, but prices are still less than what Iraq needs to balance the budget and support its economy, and the International Monetary Fund expects that Iraq's GDP will contract by 12% in 2020. That is, more than any other OPEC member, subject to restrictions on its production.
Iraq is studying the possibility of building or using storage facilities in Asia to reduce the risk of it being unable to send crude to its main customers, according to Nizar, and its Gulf neighbors, such as Saudi Arabia and the UAE, already store some of their crude in Japan, South Korea and India.
Nizar said that Iraq plans to export 1.1 million barrels per day, on average, of the new medium-grade in Basra, and the first shipment was shipped this month.
He revealed that the Council of Ministers, headed by Mustafa Al-Kazemi, has not yet signed a prepaid supply agreement worth billions of dollars with the Chinese Petroleum Corporation (Zhenhua Oil Co). Five years will come, while Shenhua will pay for the first year in advance, and the prepayment contract - the first of its kind in Baghdad - highlights the government's need for cash.
Ammar Al-Masoudi