• 6 minutes Saudis Threaten Retaliation If Sanctions are Imposed
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes Saudis Pull Hyperloop Funding As Branson Temporarily Cuts Ties With The Kingdom
  • 4 hours WTI @ $75.75, headed for $64 - 67
  • 9 hours Saudi-Kuwaiti Talks on Shared Oil Stall Over Chevron
  • 13 hours OPEC's No. 2 Producer Wants to Know How Buyers Use Its Oil
  • 3 hours The Dirt on Clean Electric Cars
  • 2 hours Uber IPO Proposals Value Company at $120 Billion
  • 33 mins Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 9 hours UN Report Suggests USD $240 Per Gallon Gasoline Tax to Fight Global Warming
  • 3 hours U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 6 hours COLORADO FOCUS: Stocks to Watch Prior to Midterms
  • 15 hours Iranian Sanctions - What Are The Facts?
  • 5 hours Nopec Sherman act legislation
  • 12 hours Who's Ready For The Next Contest?
  • 8 hours EU to Splash Billions on Battery Factories
Alt Text

Libya And Nigeria Lead OPEC Production Boost

OPEC ramped up crude oil…

Alt Text

Big Oil Is Back On A Spending Spree

With Brent oil at $85,…

Daniel J. Graeber

Daniel J. Graeber

Daniel Graeber is a writer and political analyst based in Michigan. His work on matters related to the geopolitical aspects of the global energy sector,…

More Info

Trending Discussions

Middle East Oil Markets Contracting

Middle East Oil Markets Contracting

The Iraqi and Libyan governments said they would help Egypt cope with its economic crisis by offering up crude oil exports. The Egyptian government of President Mohamed Morsi is trying to right the economic ship more than two years after the country's revolution. Conflict in Libya and Iraq, meanwhile, has raised questions about their ability to make post-war oil gains. With OPEC members forced to make adjustments to U.S. oil production gains, it may be that retraction isn't just an economic issue anymore.

The Egyptian government is trying to secure a $4.8 billion loan from the International Monetary Fund.  The country's foreign reserves have plummeted in the years since the revolution, leaving the government short on funds needed to pay for everything from food to fuel. The government this week said it would get some relief on the energy front, however, with crude oil promises from Iraq and Libya. Last month, the Libyans said they would give Egypt about $1.2 billion worth of crude on credit. In March, the Iraqi government said it would supply it with about 4 million barrels of oil per month.

Libyan oil production is holding steady at a post-war rate of around 1.4 million barrels per day. Civil war in 2011 cut Libya out of the picture. Depsite recent gains, the U.S., British and French governments expressed concern this week that government affairs were falling victim to "armed intimidation" after militias occupied several ministerial buildings. In terms of exports to the United States, a top global consumer, Libya delivered a mere 6,000 bpd in January and nothing in February, the last date for which data is available.

Related articles: A Big Boost for U.S. Oil Reserves

Iraq may be another story, however. Its pledge to Egypt suggests it has oil to spare, at least on paper. U.S. export figures support that assertion, with crude oil deliveries up more than 25 percent from January to February. Recent talks between the semiautonomous Kurdish government and the central government in Baghdad aim to kick start oil exports stymied by lingering political issues. More than 10 years of political bickering, however, suggests any major breakthroughs are a long way off.

In Egypt, meanwhile, investors expressed confidence with a decision by the Morsi administration to appoint new Cabinet ministers, including for the Petroleum and Finance Ministries. That helped with market sentiment, but did little to allay broader concerns. Some of the new ministers are from the Muslim Brotherhood, causing Morsi's critics to complain of more of the same. For the IMF, it's not expected to do much to change the larger picture of political frustration seen by lenders.

OPEC members said they may have to start looking around for new customers now that U.S. oil production is expected to top 7 million barrels by the end of this year. Nigerian energy officials said this week from Houston they were packing up shop and taking their crude oil to Asia. OPEC is adjusting to lower demand for its crude oil from the United States at the same time that its own members are increasingly the subject of international concern. For oil markets, the geopolitical turmoil that grew out of the Arab Spring shows retraction could translate to a retreat from the global stage for many coping with the "birth pangs" of revolution.

By. Daniel Graeber of Oilprice.com


x


Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News