OPEC Sees More Demand for Its Oil, Less U.S. Output
OPEC said on Monday that demand for its crude will rise this year as the U.S. produces less and consumes more, in a report that appeared to point to benefits Continue Reading
Despite violence, Iraqi oil sector booming
Iraqi oil production grew at a faster rate than any country apart from the United States, analysis from the U.S. Energy Information Administration found. “Despite some supply disruptions and security threats, Continue Reading
Iran investing in development despite low oil prices
Despite the slump in oil prices, the Iranian government aims to invest more than $16 billion in development projects, a planning director said. Mohammad Baqer Nobakht, director of Iran’s planning organization, Continue Reading
Iraq was second-leading contributor to global oil supply growth during 2014
Source: U.S. Energy Information Administration, Short-Term Energy Outlook Despite some supply disruptions and security threats, Iraq was the second-leading contributor to global oil supply growth in 2014, behind only the United States. Iraq accounted for almost 60% of production growth among the Organization of the Petroleum Exporting Countries (OPEC), although this growth was more than offset by production declines in other OPEC countries. Iraq’s crude oil production, which averaged almost 3.4 million barrels per day (bbl/d) in 2014, was 330,000 bbl/d above 2013 levels, despite the heightened security threat from the Islamic State of Iraq and the Levant (ISIL) and disrupted production in northern Iraq. Source: U.S. Energy Information Administration, Short-Term Energy Outlook, Iraq Country Analysis Brief ISIL attacks in northern Iraq in early June 2014 reduced northern Iraqi production and refinery operations (not including the Iraqi Kurdistan Region). These attacks did not affect southern production and exports, which […]
In payment drought, oil companies pare KRG investment
TheTaq Taq-Khurmala Oil Pipeline. (KAMARAN NAJM/Metrography/Iraq Oil Report) Iraq’s autonomous Kurdistan Regional Government (KRG) has not paid its oil contractors since November, highlighting political and financial problems that could hamper plans to increase production and exports.“We’re not going to be in a position to invest until we are able to receive more in payments,” said Bijan Mossavar Rahmani, the Executive Chairman of Norway’s DNO, in a Feb. 5 presentation to investors. “Companies expect and were promised payment. And without payment they’re no…
The Battle for Libya’s Oil
The Battle for Libya’s Oil thumbnail The first artillery rounds landed just as the setting sun threw shadows on this barren stretch of coast. Atop an earthen observation berm, a young fighter in an oversize flak vest peered through a makeshift periscope. Six miles away was the prize: white storage tanks filled with oil. Over the walkie-talkie came a hurried voice: “Saadun, Saadun, the bird is here, the bird is here!” Saadun was the codename for a portly commander in the Libya Dawn militia and my escort on the frontline when I visited Libya in January. His men—boys, actually—had teased him earlier for struggling to haul his hefty frame up the berm. The bird was a MiG-21 or MiG-23 fighter-bomber belonging to the rival Dignity forces. An overhead roar gave way to crackling flashes across a cloudless sky—flak from anti-aircraft guns. The MiG dropped its bomb about a mile […]
East African Countries Could Lose Out On Low Oil Prices
Nairobi — East African countries are unlikely to significantly benefit from falling global oil prices due to inadequate storage facilities, a new research paper released by Deloitte East Africa indicates. "East African countries’ failure to set up sufficient oil storage facilities will mean that the region could miss out on a chance to accumulate cheap stockpiles as is the trend abroad," the research note argues. Over the past few months, global oil prices have more than halved, to stand at just below $50 (Sh 4,568) a barrel for the first time since May 2009. Across East Africa, motorists have however complained that the drop in pump prices is not commensurate with the movements in crude oil prices. "The plunge in prices of oil has rekindled the debate whether lower prices are cascading down to drivers such as the cost of electricity (generated from fossil fuels) and if travellers are […]
Nigeria Naira Falls to Record as Devaluation Threat Seen Rising
(Bloomberg) — Nigeria’s naira fell to a record after the West African nation’s decision to postpone elections increased risks the continent’s worst-performing currency will be devalued. The naira retreated as much as 1.5 percent to 199.10 per dollar before paring losses to trade at 199.01 by 11:12 a.m. in Lagos. The currency is depreciating for a seventh day to the weakest level since Bloomberg started compiling the data in January 1999, extending losses this year to 7.8 percent, the most among 24 currencies tracked by Bloomberg. “Traders are seeing higher uncertainties in the market with the postponement of the election,” Lanre Buluro, head of research at Primera Africa Securities Ltd., said by phone from Lagos. “There is speculation on the naira with many buying dollars in anticipation of imminent devaluation before the election or after.” Investors are delaying decisions to commit money to Nigeria as escalating violence by the […]
Venezuela’s Rating Lowered by S&P on Outlook for Economic Policy
(Bloomberg) — Venezuela had its credit rating lowered by Standard & Poor’s, which said the government will struggle to implement changes needed to shore up the economy. S&P cut Venezuela’s long-term rating by one level to CCC, eight notches below investment grade. The outlook is negative, S&P said Feb. 9 in a statement. “Economic recession, high inflation, and growing shortages have weakened public support for the government, likely reducing its political room to introduce difficult corrective economic measures that would improve its external liquidity position,” S&P said. Venezuela’s gross domestic product could shrink as much as 7 percent this year after the 60 percent plunge in prices for oil since June, S&P said. The commodity accounts for 90 percent of exports and the decline in prices means the government has less room to adjust policy and avoid a default, S&P said. “Pressure is growing for the government to reschedule […]
China January inflation hits five-year low
BEIJING (Reuters) – China’s annual consumer inflation hit a five-year low in January while factory deflation worsened, underscoring deepening weakness in the economy and heaping pressures on policymakers to inject more stimulus to underpin growth. The risk of deflation is rising for the world’s second-largest economy as a property market downturn and widespread factory overcapacity have been compounded by an uncertain global outlook and falling commodity prices. A collapse in global oil prices have already unleashed a wave of easings around the world as central bankers from Europe to Canada to Australia sought to defuse the deflationary pressures and bolster their economies. And more policy support is expected from Beijing after the National Bureau of Statistics said on Tuesday that China’s consumer price index rose 0.8 percent in January year-on-year, undershooting expectations of a 1.0 percent rise and marking the weakest reading since November 2009. "Today’s data confirmed the […]