Gazprom Neft Starts Production at Iraq Badra Oilfield
Russia's Gazprom Neft, the oil arm of state-run Gazprom, has started initial commercial oil production from its Badra oilfield in Iraq, the oil ministry said on Wednesday. Production from Badra started on Monday at an average of 15,000 barrels per day and is expected to reach 170,000 bpd of crude oil by 2017, the ministry said in a statement. "Oil flow from Badra has started on Monday to fill the oilfield storages in preparing to feed the export," said ministry spokesman Asim Jihad. The oilfield is located in the Wasit Province in eastern Iraq with an estimated 3 billion barrels of oil in reserve.
Oil Prices High amid Iraq Violence
Oil prices jumped to nine-month highs on Thursday, as concerns mounted that escalating violence in Iraq could disrupt oil supplies from the second-largest OPEC producer. Sunni Islamist militants, who took over Iraq's second-biggest city Mosul earlier this week, extended their advance south toward Baghdad and surrounded the country's largest refinery in the northern town of Baiji on Thursday. "The fear is that will cause a threat to Iraqi oil exports," Christopher Bellew, a trader at Jefferies Bache, said. Brent futures gained $3.07 to settle at $113.02 a barrel, the highest level since Sept. 9. U.S.
Oil Up Near $110 on Iraq Supply Disruption Fears
U.S. Oil futures rose toward $110 a barrel on Wednesday as violence in Iraq prompted worries about the supply outlook, while a fall in U.S. gasoline stockpiles pointed to stronger seasonal demand. Militants from an al Qaeda splinter group who seized Iraq's second-biggest city, Mosul, earlier this week have advanced into the oil refinery town of Baiji, raising concerns about oil supply interruptions should other parts of the country fall. U.S. crude, meanwhile, found slight support from a weekly government report showing a fall in crude oil and gasoline stocks despite high production.
Supply Tremors Shake OPEC Equilibrium
OPEC sailed through a brief, calm meeting on Wednesday - even as oil prices rose to $110 on barrel on concern renewed strife could hit Iraq's output and deepen a supply shortfall from chaotic Libya and sanctions-bound Iran. Oil ministers painted a soothing image of good supply, and prices beneficial to all, although some among them struggled to eke out exports. Consuming nations might bank on sharply higher supply from Libya, Iran and Iraq, on the basis of their bullish estimates of future exports this week - but only once they have put present troubles behind them.
OPEC to Renew 30 mln bpd Output Ceiling
OPEC agreed on Wednesday to renew its oil production ceiling of 30 million barrels a day for the second half of this year, in a widely anticipated decision. The 12-member Organisation of the Petroleum Exporting Countries is satisfied with oil prices around $110 a barrel for Brent crude, comfortably above its preferred price of $100 a barrel, ministers said. Two member countries, Libya and Iran, are producing well below capacity because of civil conflict and sanctions respectively, helping support prices.
Oil Above $110 on Iraq Supply Fears
Iraq's Mosul falls to militants, U.S. says situation 'extremely serious.' Iran says ready for quick oil output increase post-sanctions. Oil futures rose above $110 a barrel on Wednesday as violence in Iraq prompted worries about the supply outlook, while a fall in U.S. stockpiles of gasoline pointed to stronger seasonal demand. Brent futures gained 50 cents to $110.02 a barrel by 1136 GMT, after shedding 0.4 percent in the previous session. U.S. oil rose 17 cents to $104.52 a barrel. It hit an intraday high of $105.06 in the previous session, inching close to the peak for the year at $105.22, touched in early March.
Iraq Plans "Severe Measures" over Kurdish Oil Exports
Iraq's oil minister on Monday condemned the export of pipeline crude from Iraqi Kurdistan and threatened the region and Turkey, its point of export, with severe measures. "What happened in my view was the biggest mistake that has been made by the Kurds and the Turks...and the Iraqi government will take severe measures," Abdul Kareem Luaibi told a news briefing. He repeated that Baghdad would sue the Turkish government and Turkish pipeline state owned operator Botas for facilitating the sale of crude from the Kurdish region without the central government's consent.
At Donkey Springs, Bombers Choke off Iraq Oil Exports
Militants whose bombs have shut Iraq's main northern oil export pipeline for 40 days are preventing repairs, threatening to extend an outage that is already the longest since the days of sanctions in the 1990s. Targeting the Kirkuk-Ceyhan pipeline where it crosses a stretch of desert known as Ain al-Jahash, or Donkey Springs, the saboteurs - described as Islamists by Iraqi officials - have set several more bombs since a first blast halted oil on March 2. Significantly for an Iraqi government hoping for a…
Med Crude: Urals Weakens In The Baltic
Russian Urals crude weakened in the Baltic on Wednesday due to a number of unsold cargoes while Kazakh CPC continued to strengthen due to a lack of sweet barrels. In the Platts window, Trafigura bought a cargo of Urals from Eni at dated Brent minus $1.30 a barrel, some 35 cents weaker than previous price estimates, traders said. Total bid for a cargo of CPC at dated Brent minus 40 cents, some 10 cents stronger than previous price estimates. The price of Urals in southern Europe moved closer to parity with dated Brent due to an absence of Iraq's Kirkuk crude, strong demand and attractive refining margins, traders said.
Baltic Med Crude-Urals Weakens, Opens Arb Options
Russian Urals crude weakened in the Baltic on Wednesday due to a number of unsold cargoes while Kazakh CPC continued to strengthen due to a lack of sweet barrels. In the Platts window, Trafigura bought a cargo of Urals from Eni at dated Brent minus $1.30 a barrel, some 35 cents weaker than previous price estimates, traders said. Total bid for a cargo of CPC at dated Brent minus 40 cents, some 10 cents stronger than previous price estimates. The price of Urals in southern Europe moved closer to parity with dated Brent due to an absence of Iraq's Kirkuk crude, strong demand and attractive refining margins, traders said.
