DNO International is expecting Iraq’s government and the Kurdish regional leadership to agree upon a deal that would allow DNO to export crude oil from its Kurdish fields in the coming months. Chief Executive Helge Eide said: It would be very difficult to see it dragging on beyond the second quarter. For full story, click [...]
The United States government statement that U.S. employers had slashed over a half million jobs in January, the highest yet in 35 years, lead to crude oil prices dropping just below $41 a barrel, way below the high of $147 a barrel last summer. There is a link between layoffs and the demand on oil, say analysts, as those laid off see no need for the daily commute, and buy less of petroleum products like toys and raincoats.
It is obvious that a barrel price below $60 on the NYMEX is bad news for oil companies. Part of the drop reflects a strengthening American dollar, but recent demand forecast revisions are bleak. Governments, companies and investors think a prolonged recession or period of low growth is in the offing, and everyone should take note.
The expiration of October trading certainly played a disproportionate role in the record one-day gain, as it exercised a huge pressure on short positions. The meteoric rise also illuminates how much the vacillation is due to speculative activity.
OPEC’s meeting tomorrow will almost certainly result in talk of cutting production, but not much in the way of concerted action. Member nations’ motivations are not synchronized, so consensus is exceedingly unlikely. Iran wants to impose OPEC-wide decreases, but the UAE thinks current levels are appropriate. Although OPEC will not move together on this issue, some countries (notably Saudi Arabia) are likely to retrench significant volumes.
An official at the ministry said: Iraq’s Oil Minister Hussain al-Shahristani will visit Beijing at the end of this week to conclude a contract to develop the Ahdab oil field with a unit of China National Petroleum Corp. For more information, click here
Anadarko Petroleum Corp., the second-largest independent U.S. oil producer, dropped plans to pump crude in Iraq. Company spokeswoman Paula Beasley said: We do not intend to pursue additional interests at this time. For more information, click here Click here for company’s website.
At this point, there are much more pressing threats to the pipeline’s continued functioning. A long simmering dispute between Georgia and Russia over the disputed South Ossetia region erupted into war. Reports on Monday morning confirmed that Russian forces had pressed along the Greater Liakhvi River, beginning to enter the city of Gori.
Iraq’s oil ministry said: Iraq and China are set to revive a $1.2 billion oil deal that was canceled after the 2003 U.S.-led invasion. For more information, click here
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