• 3 minutes 2nd Annual Great Oil Price Prediction Challenge of 2019
  • 6 minutes "Leaked" request by some Democrats that they were asking Nancy to coordinate censure instead of impeachment.
  • 11 minutes Trump's China Strategy: Death By a Thousand Paper Cuts
  • 14 minutes Democrats through impeachment process helped Trump go out of China deal conundrum. Now Trump can safely postpone deal till after November 2020 elections
  • 19 mins Shale Oil Fiasco
  • 6 hours USA v China. Which is 'best'?
  • 11 mins Everything you think you know about economics is WRONG!
  • 6 hours Wallstreet's "acid test" for Democrat Presidential candidate to receive their financial support . . . Support "Carried Interest"
  • 1 hour My interview on PDVSA Petrocaribe and corruption
  • 15 hours Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 7 hours Quotes from the Widowmaker
  • 1 day True Confessions of a Billionaire
  • 6 hours Global Debt Worries. How Will This End?
  • 13 hours Petroleum Industry Domain Names
Alt Text

Lower Oil Prices Fail To Stop U.S. Shale Growth

U.S. shale growth doesn’t appear…

Alt Text

The 2 ‘’Deals’’ That Could Send Oil Soaring

Oil prices are rising toward…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Geopolitical Tensions Rise As Iran-Iraq Oil Swap Begins

A crude oil swap deal between Iran and Iraq, which was supposed to begin in mid-April, has started, Iran’s Shana agency reported yesterday, as quoted by Reuters. Under the deal, Iraq will send oil from the Kirkuk fields to Iran by truck, to be refined in Iran, and Iran will send the same amount of crude it receives to Iraq’s southern ports for export.

The deal is seen by some as a major influence push by Iran in Iraq, after Tehran helped Baghdad quash an emerging independence movement in Kurdistan that culminated in an independence referendum, the results of which Baghdad refused to recognize. After the referendum, Iraq, helped by Iran, sent troops to Kurdistan and retook control of Kirkuk and the oil fields around the northern Iraqi city.

In earlier reports on the swap deal, an Iraqi oil official had said the initial flow of Kirkuk oil to Iran would be 30,000 bpd, but could rise to 60,000 bpd within a year—the initial duration of the deal—which the sides agreed could be extended.

In the future, the partners plan to build a new pipeline from the Kirkuk field to the border with Iran, to replace the tanker trucks. This suggests that although the initial term of the deal is just one year, there are plans to make it a longer-term deal. Related: Why Oil Markets Should Fear Trump’s Trade War

This new pipeline, Reuters noted last December, could replace the current Kirkuk-Ceyhan infrastructure, which is the main channel for exporting Kirkuk crude oil to Turkey and the Mediterranean. Iraq will also build a new pipeline along the Kirkuk-Ceyhan route to replace a badly damaged section of the existing infrastructure.

The oil swap could also strain the relations between Saudi Arabia and Iraq—OPEC’s number-one and number-two producers, respectively. Baghdad has had good relations with OPEC’s de facto leader, but warming relations with Tehran is unlikely to sit well with Riyadh.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play