• 4 minutes Your idea of oil/gas prices next ten years
  • 7 minutes WTI Heading for $60
  • 13 minutes Could EVs Become Cheaper than ICE Cars by 2023?
  • 1 day Pence says South China Sea Doesn't Belong To Any One Nation
  • 2 days Anyone holding Nvidia stock?
  • 5 hours Is California becoming a National Security Risk to the U.S.?
  • 19 hours Why does US never need to have an oil production cut?
  • 2 days Germany Discusses Lifting Ban on Deporting Syrians
  • 2 hours US continues imports of Russian gas which it insists Europe should stop buying
  • 2 days UK Power and loss of power stations
  • 2 hours Pros and Cons of Coal
  • 6 hours Trump administration slaps sanctions on Saudis over Khashoggi's death
  • 2 days China Claims To Have Successfully Developed a Quantum Radar That Can Detect 'Invisible' Fighter Jets
  • 2 days I Believe I Can Fly: Proposed U.S. Space Force Budget Could Be Less Than $5 Billion
  • 2 days A Sane Take on Nord Stream 2
  • 22 hours Commission: U.S. Could Lose Wars With Russia, China
Is OPEC’s Oil Outlook Too Bullish?

Is OPEC’s Oil Outlook Too Bullish?

Many market watchers agree that…

Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd

Pipeline

The flow of crude oil through the Kurdistan pipeline from Kirkuk to the Turkish port of Ceyhan have plummeted to some 225,000 bpd, from a typical flow of around 600,000 bpd, Reuters reported on Wednesday, citing a shipping source.

On Tuesday the crude oil flows were some 500,000 bpd, said the source who didn’t provide a specific reason for the sharp drop.

Also on Tuesday, Iraqi government forces seized control of all oil fields that Iraqi state-held North Oil Company operates in the oil-rich Kirkuk region from Kurdish forces.

Last week, Iraq’s Oil Minister Jabbar Al-Luiebi ordered state-held oil and pipeline companies to begin restoring oil flows from Kirkuk to Ceyhan via a pipeline that bypasses Kurdistan, increasing pressure on the breakaway region that voted for independence last month in a referendum strongly opposed and deemed illegal and invalid by the federal government.

But until that pipeline bypassing Kurdistan is repaired, Iraq’s central government must rely on the Kurdish Kirkuk-to-Ceyhan route for exports from its fields in the Kirkuk area. So, it’s in the interest of both parties to keep flows running.

The escalation of the tensions in Iraq since the Kurdistan referendum at the end of September has brought the geopolitical premium back into the oil markets.  

According to Goldman Sachs, although both Iraq and Kurdistan are interested in keeping the oil flowing, “…this does not rule out sustained production disruptions as we note that Iraq has less downside risk [given its southern exports] than KRG [Kurdistan Regional Government] if flows to Ceyhan [in Turkey] are interrupted and global oil prices rally,” the bank said on Tuesday, as quoted by Reuters.

“It remains to be seen whether the Kurds, after withdrawing from the region they claim to be entitled to, will allow crude oil to be transported by pipeline across their territory to the Turkish Mediterranean port of Ceyhan,” Commerzbank analysts said, quoted by Reuters.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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