Iraq Raises Crude Exports Ahead of OPEC Meeting

Iraq Raises Crude Exports Ahead of OPEC Meeting

Iraq will supply 5 million barrels of extra crude to its partners in June, industry sources familiar with the issue said, joining other Middle East producers by lifting market share ahead of an OPEC meeting this week.
The second-largest producer in the Organization of Petroleum Exporting Countries had already been targeting record crude export amounting to 3.47 million bpd next month from southern terminals, CNBC reported.
Saudi Arabia, Kuwait, Iran and the UAE also plan to raise supplies in the third quarter.
A recovery in global oil prices from 12-year lows to above $50 a barrel and rivalry between Saudi Arabia and Iran have dampened expectations that OPEC will rein in supplies at Thursday's meeting.
While additional exports could make up for shrinking output and supply disruptions elsewhere, the new supplies also risk delaying a rebalancing of a global market still awash with oil.
"OPEC is indeed increasing supplies, practicing their market share first strategy," said Victor Shum, managing director of downstream energy consulting at IHS, referring to a Saudi-led drive to boost OPEC's production to take back market share.
He said that additional oil from Saudi and Iraq may slow down a rebalancing of market, although this could be countered by supply disruptions from other places and strong seasonal demand.
Iraq's Oil Marketing Company allocated 5 million more barrels of Basra Light crude loading in June to upstream partners, including PetroChina, Eni and Lukoil, three sources familiar with the matter said.
Foreign companies are paid in oil under technical service contracts signed with SOMO, although payments have been delayed after the oil price drop squeezed Iraq's budget.

Short URL : http://goo.gl/PdRnNc
  1. http://goo.gl/DxfCfJ
  • http://goo.gl/2J6VeY
  • http://goo.gl/B243ky
  • http://goo.gl/rRKo2r
  • http://goo.gl/VLWFSS

You can also read ...

China Can Substitute US Crude With Iranian Oil
Beijing’s retaliatory measures against US tariffs can include...
Exxon to Build LNG Terminal in Australia
ExxonMobil plans to develop a project to import liquefied...
Iran to Tap International Banks for Energy Finance
Domestic water and power plans are expected to draw a total of...
Goldman kept its forecast that Brent Crude will hit $82.50 a barrel this summer and end 2018 at $75 per barrel.
Despite expectations that OPEC and Russia will likely decide...
Japan Accelerates Plan for Restoring Gas Supply
Japan’s Osaka Gas Company said on Tuesday it would bring...
NIOC Needs to Maintain Current Output, Exports
Despite the US-Saudi Arabia ploy to coerce OPEC members' to...