• 3 minutes Looming European Gas Crisis in Winter and North African Factor - a must read by Cyril Widdershoven
  • 7 minutes "Biden Targets Another US Pipeline For Shutdown After 'Begging' Saudis For More Oil" - Zero Hedge Monday Nov 8th
  • 12 minutes "UN-Backed Banker Alliance Announces “Green” Plan to Transform the Global Financial System" by Whitney Webb
  • 1 min GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days Building A $2 Billion Subsea Solar Power Cable From Chile To China
  • 1 day China's aggression is changing the nature of sovereignty.
  • 2 days Hunter Biden Helped China Gain Control of Cobalt Mines in Africa
  • 2 days OPEC+ Expects Large Oil Glut In Early 2022
  • 23 hours Ukrainian Maidan after 8 years
  • 1 day Delta variant in European Union
  • 2 days President Biden’s Nuclear Option Against OPEC+ - Waste of Time
  • 13 hours Communist China Declared War on the US Long Ago Part 1 of the 2-part series: The CCP's War on America
  • 2 days CO2 Electrolysis to CO (Carbon Monoxide) and then to Graphite
  • 2 days Forecasts for Natural Gas
  • 2 days Microbes can provide sustainable hydrocarbons for the petrochemical industry
  • 2 hours Сryptocurrency predictions
  • 2 days NordStream2
  • 3 days Big Bounce: Russian gas amid market tightness - new report by Oxford Institute for Energy Studies
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

Falling Iraqi Exports Drive Oil Prices Higher

Crude oil prices continued their ascent today as lower exports from Iraq amid the internal conflict with the Kurds gave oil bulls a cause for optimism. Brent crude was trading above US$57 a barrel and WTI was close to US$52 in morning Asian trade today. At 6:49 EDT, WTI was at US$52.26 a barrel.

Crude oil exports from Iraq have fallen by more than 200,000 bpd since the start of the month, and it’s unclear how long this lower export rate will continue. At the same time, drilling rig numbers in the United States are falling, too: Baker Hughes reported declines in the rig count for 10 of the last 12 weeks. The declines follow a string of capex cuts for the year, Reuters notes.

Meanwhile, columnist John Kemp noted that hedge funds and other money managers continue to hold substantial long positions on crude, equivalent to 883 million barrels in the five biggest futures and options contracts as of October 17, as they wait for the higher demand growth that was forecast recently by several authorities.

OPEC’s recent announcement about a record-high compliance rate of 120 percent among all participants in the oil production cut agreement served to solidify speculator’s optimism. The cartel added that “all options are on the table” with regard to extending the agreement to the end of 2018. Related: Syrian Kurds Cut Secret Gas Deal With Russian Forces

One analyst, Tomomichi Akuta, from Mitsubishi UFJ Research and Consulting, said that “The market is currently weighing supportive materials more, such as the Kurdistan situation, the slowdown in shale-related (U.S.) rig counts and the possible extension in OPEC (output) cuts.”

Vandana Hari from Vanda Insights, on the other hand, said that the market is already pricing the risk of 320,000 bpd from fields around Kirkuk getting stranded after the Iraqi forces took over the oil city. She added that most of Iraq’s oil comes from the southern fields, so there will be no severe disruption in global supply as a result of the conflict in Kurdistan.

After all, Hari, says, there is more than 1.7 million bpd in unused oil production capacity among the participants in the OPEC cut deal, so a disruption in Iraqi supply can easily be plugged.

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




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News