Oil prices tumbled Monday amid doubts over OPEC’s proposed output cut, after Iraq signaled it wants to be excluded from the pact.U.S. crude for December delivery recently lost 73 cents, or 1.4%, to $50.12 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, lost 69 cents, or 1.3%, to $51.90 a barrel on ICE Futures Europe.Iraqi oil officials Sunday were reported to have said they wouldn’t scale back output, which currently stands at 4.77 million barrels a day. Iraq is the second largest Organization of the Petroleum Exporting Countries producer after Saudi Arabia, making its commitment to any cut to OPEC’s oil output key.“This shift by OPEC’s second-largest producer could become a deal breaker,” said Tim Evans, analyst at Citi Futures Perspective in New York.
Source: Oil Prices Fall After Iraq Signals Doubts Over OPEC Cut – WSJ
Oil prices came under pressure on Monday as Iraq said it wanted to be exempt from an OPEC deal to cut production, though losses were capped by Iran saying it would encourage other members to join an output freeze.Brent crude futures LCOc1 were up 6 cents at $51.84 a barrel by 0413 EDT. U.S. West Texas Intermediate (WTI) crude CLc1 was down 5 cents at $50.80.Iraqi oil minister Jabar Ali al-Luaibi said Baghdad wants to be exempt from any production cut the Organization of the Petroleum Exporting Countries is aiming to achieve.Falah al-Amiri, head of Iraq state oil marketer SOMO, added that Iraq’s market share had been compromised by the wars it has fought since the 1980s.”We should be producing 9 million (barrels per day) if it wasn’t for the wars,” he said.
Source: Oil prices under pressure as Iraq resists joining output cut | Reuters
Posted in Iraq, OPEC
Tagged Iraq, oil, OPEC
President Obama’s plan for fighting the Islamic State group is predicated on having a credible and effective Iraqi ally on the ground in Prime Minister Haider al-Abadi.
In recent days, the administration had been optimistic, despite the growing political unrest in Baghdad, about that critical partnership.
But that optimism — along with the administration’s strategy for battling the Islamic State group in Iraq — was thrown into doubt after protesters stormed Iraq’s Parliament on Saturday and a state of emergency was declared in the city.
Posted in Uncategorized
Hundreds of protesters in Baghdad stormed the parliament building Saturday as the Shiite cleric behind the demonstrations warned he could bring down the Iraqi government.Protesters who had been gathering for a “million-man” march in Baghdad stormed the legislature, smashing glass and furniture inside. Outside the building, other protesters set a vehicle on fire. .No MPs were believed to be inside the parliament, as the legislature postponed a session earlier in the afternoon that was supposed to vote on new ministers. Sources said that Kurdish MPs were rushing to the airport to return to the northern Kurdistan Region.Meanwhile, Shiite Iraqi cleric Muqtada al-Sadr warned he could “destroy” Iraq’s government.“I am promising you that I will not make any agreements with other politicians. I work for the benefit of the nation,” Sadr said in a speech in the holy city of Najaf.
Source: Update: Protesters storm parliament as Iraq crisis deepens
Posted in Iraq
Energy Minister Michael Fallon took the opportunity on 24 June 2014 at the UK Shale Conference to cite the energy security crises in the Ukraine and Iraq as further reason for the UK to focus on shale gas and oil exploration.In the latest step towards the development of the UK shale industry, revisions to petroleum licence Model Clauses will be implemented to accommodate the practicalities of fracking compared with recovery of conventional resources. Specifically, and recognizing that shale plays may cover vast areas see, for example, the Bakken formation in North America and the Bazhenov formation in Russia, existing rules relating to operations and retention of acreage will be amended to allow greater flexibility for unconventional resource development.Whilst we await further details of the new regime, it appears that concepts include “Production Plans” relating to specific areas of the licensed area and “Retention Agreements” allowing the licensee to retain acreage subject to approved work plans. Given that neither of these is particularly revolutionary we already have development and production programs, field delineation and phased relinquishment under the existing licensing regime, it will be interesting to see the specifics that facilitate shale development. We might, for example, expect to see bespoke provisions relating to appraisal operations, continuous production and longer holding periods. The Government, however, is particularly cognizant of the issue of “land-banking”, and is apparently keen to dissuade licensees from sitting on large acreages by requiring “plans for meaningful activity” although the precise meaning of this requires clarification.
via UK announces unconventional petroleum licensing model clauses – Oil & Gas Financial Journal.
The unconventional supply revolution that has redrawn the global oil map will likely expand beyond North America before the end of the decade, the International Energy Agency IEA says in its annual five-year oil market outlook released today.The report also sees global oil demand growth slowing, OPEC capacity growth facing headwinds, and growing regional imbalances in gasoline and diesel markets.The IEA’s Medium-Term Oil Market Report 2014 says that while no single country outside the US offers the unique mix of above- and below-ground attributes that made the shale and light, tight oil LTO boom possible, several countries will seek to replicate the US success story.
via Shale oil boom 'to spread beyond North America' | The Australian.