• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 7 hours Would bashing China solve all the problems of the United States
  • 12 hours COVID 19 May Be Less Deadly Than Flu Study Finds
  • 5 hours Yale University Epidemiologist Publishes Paper on Major Benefits of Hydroxchloroquine for High-risk Outpatients. Quacksalvers like Fauci should put lives ahead of Politics
  • 1 hour China to Impose Dictatorship on Hong Kong
  • 5 hours Incompetent "Journalists"
  • 12 hours Model 3 cheaper to buy than BMW 3 series.
  • 2 hours Thugs in Trumpistan
  • 14 hours Iran's first oil tanker has arrived near Venezuela
  • 15 hours Let’s Try This....
  • 17 hours Chicago Threatens To Condemn - Possibly Demolish - Churches Defying Lockdown
  • 20 hours HVDC Cheaper Than Low-carbon Natural Gas
  • 14 hours Pompeo's Hong Kong
  • 6 hours 60 mph electric mopeds
  • 20 hours Oil and Gas After COVID-19
Oil Prices Stabilize On Rumors Of An OPEC+ Extension

Oil Prices Stabilize On Rumors Of An OPEC+ Extension

Oil prices stabilized on Thursday…

Iraq Oil Production Hits 35 Year High

Iraq produced oil at a rate of 3.62 million barrels per day in February, a 35-year high. Monthly output jumped by 530,000 bpd from a month earlier on infrastructure upgrades. The milestone led to OPEC blowing past its production quota, producing 30.49 million bpd as a bloc, or about 300,000 bpd above its target. Iraq’s strong oil gains offset lost Libyan production, where a political crisis continues to drag on its oil sector.

“The exceptional increase in February’s exports has been an unexpected boost for the country, which has struggled to meet production targets,” the IEA said. “Increased export capacity and the start-up of new production in the south holds the promise of higher output this year.”

On March 12 OPEC revised upwards its projection for annual oil demand growth by 50,000 bpd, the second month it did so. That leaves its current estimate for global demand growth at 1.14 million bpd. The big uncertainty is the extent to which the Chinese economy slows. Fears of a swift decline in growth are weighing on commodities, including oil.

Related Article: Pipeline to Turkey Intensifies Dispute Over Iraqi Oil

Meanwhile, OPEC also decided to cut oil exports for March to its lowest level in five months as refinery demand slows due to warming weather. OPEC announced it will cut oil shipments by 1.1 million bpd to 23.6 million bpd, through the end of the month. Refineries typically slow their operations in spring months on lower demand, and many conduct routine maintenance during this period.

Higher supplies from Iraq, lower refinery demand, improving weather in the U.S., and uncertainty over the state of China’s economy have raised worries of oversupply, which will downward pressure on oil prices over the next few weeks. On the other hand, geopolitical tension in Ukraine is preventing oil prices from falling significantly.

By Joao Peixe of Oilprice.com



Join the discussion | Back to homepage



Leave a comment

Leave a comment

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