Citigroup Eyes Oil, Infrastructure in Iraq
Citigroup Inc. (C) received approval last week to open a representative office in Baghdad to take advantage of the estimated $1 trillion to be spent on oil and infrastructure creation in Iraq. Citigroup is not flinching at the prospect of another civil war in Iraq as sectarian tensions overflow while the country becomes the definitive second front in the war in Syria. Citigroup is also reportedly considering opening additional offices and branches in other areas of Iraq. Citigroup describes Iraq as a “giant waking up”, with international business coming in to rebuild roads, telecommunication networks and electricity & water infrastructure, along with oil and gas exploration and production.
US West Coast Imports Record Oil From Interior
The premium for Russia’s East Siberia-Pacific Ocean oil has retreated 60% against US benchmark West Texas Intermediate since 20 February 2013, as the US West Coast brings in record amounts of crude from domestic plays in the interior. Russian imports to the West Coast have fallen to 713,000 barrels from a high exactly a year ago of 6.53 million barrels. If the current pace continues, the most optimistic of analysts believe that overseas imports to the West Coast could end altogether next year. The trick will be moving more oil by rail to the West Coast from the interior.
German-Canadian JV ‘Floating on Oil’ on Baltic…