Bulletin Empire
  • Home
  • Politics
  • World
  • Business
  • Finance
  • Science
  • Technology
  • Arts
  • Lifestyle
  • Real Estate
Bulletin Empire
  • Home
  • Politics
  • World
  • Business
  • Finance
  • Science
  • Technology
  • Arts
  • Lifestyle
  • Real Estate
No Result
View All Result
Bulletin Empire
No Result
View All Result

Is Iraq’s ‘extraordinarily toxic’ turmoil a risk to the oil market?

Logan by Logan
August 31, 2022
in Economy
0
Is Iraq’s ‘extraordinarily toxic’ turmoil a risk to the oil market?

Image Source- www.bnreport.com

399
SHARES
2.3k
VIEWS
Share on FacebookShare on Twitter

The political turmoil in Iraq might represent a serious threat to the world’s oil markets, specialists said CNBC.

“While Iraqi production is usually fairly resilient to unrest, the current political environment is extraordinarily toxic and poses a considerable risk to the oil sector,” stated Fernando Ferreira, a director at Rapidan Energy Group.

After prominent Shiite Muslim cleric Muqtada al-Sadr announced his departure from politics on Tuesday, protests in Iraq erupted into a full-scale demonstration.

Image Source- Reuters

Persistent risk

Sadr’s plea for calm has reduced the likelihood of an interruption in oil supply, but Ferreira warned that the conflict over control of the country’s Shia population is far from settled, and that civil upheaval in Iraq will continue to pose a threat to oil markets on a regular basis.

“Prices could rally $5-10 on Iraqi disruptions, possibly more as low liquidity is driving bigger swings than usual,” he made a projection.

Slips in Iraqi oil output may have a substantial impact on the global oil market, which is already under pressure from low oil stockpiles and the failure of major OPEC members to achieve their quota commitments, according to Timothy France, a senior oil market analyst at Refinitiv.

“Even partial declines in Iraqi oil output and exports may have a significant upward impact on crude benchmark prices in Asia and Europe,” stated France.

Averaging 100.8 million barrels per day, the OPEC predicts that by 2022, there would be a significant increase in global oil consumption. According to data from Refinitiv, Iraq produces about 4.5 thousand barrels of oil per day, and its current exports account for roughly 3.5% of the world’s demand.

″The unrest we’ve seen in recent days has been mostly concentrated in Baghdad and southern Iraq, which exports 3.3 thousands to 3.4 thousand barrels of oil per day — a little over 3% of the global market,” France added further.

India and China

A reduction in Iraqi crude oil shipments will have a significant impact on the physical supplies of oil in the Chinese and Indian markets, France said CNBC by email.

Image Source- Berkeley Economic Review

“China and India are top importers of Iraqi crude oil, receiving an estimated 797,000 bpd and 817,000 bpd in August,” France stated.

Ferreira continued, saying that the OPEC+ decision-making procedures might become more circumspect as unrest grows. The group will convene on September 5 and includes producers from OPEC, Russia, and other allies.

”[The unrest may] encourage ministers to defer making adjustments to production quotas until there’s more clarity on the direction of geopolitical risks threatening the oil market,” he said.

There have not yet been any significant disruptions

Despite the alarming numbers, both analysts claimed there have not yet been any significant delays to Iraq’s oil production. “Iraqi crude oil exports have averaged 3.53 million barrels per day. Weekly data export shows no sign of a slowdown,” said France. “Tankers are currently [still] loading at Basrah Oil Terminal.”

“Refinitiv’s historical export data shows no major export outages at the Basrah Oil Terminal dating back to 2014. During this time Iraq has arguably endured more severe security threats than it is today.”

Tags: China and IndiaChina and India are top importers of Iraqi crude oilconsiderable risk to the oil sectorcurrent political environment is extraordinarily toxicdecline in oil pricesglobal demand for oil is estimated to average 100.8 million barrels per dayglobal oil marketIraqIraq’s ‘extraordinarily toxic’ turmoil is a considerable risk to the oil marketIraq’s political turmoilIraqi crude oil exportsIraqi oil outputlow liquidityno major disruptions to Iraqi oil outputNo major disruptions yetoil investmentsoil marketoil market developmentsoil marketsoil ministersOil pricesOil prices fall as weak factory data fuels global demand concernsoil prices fallsOPECOPEC members failing to meet quota commitmentsOPEC+ decision-making processesRecurring riskrecurring risk to oil marketsrise in the price of oilrisk to global oil marketsrisks of disruptionrisks of disruption to oil suppliesslips in Iraqi oil productionupward impact on crude benchmark prices
Previous Post

Everything You Need to Know About China’s Historic Meeting on October 16

Next Post

Star Wars game maker acquired by Chinese tech giant NetEase

Next Post
Star Wars game maker acquired by Chinese tech giant NetEase

Star Wars game maker acquired by Chinese tech giant NetEase

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

3 Smart Steps to Take If You Have $1,000 in the Bank
Make Money

3 Smart Steps to Take If You Have $1,000 in the Bank

by Logan
October 20, 2022
0

You're missing out if you keep a lot of money in your bank account. A significant accomplishment is amassing $1,000...

Read more
8 Legit Ways to Make Extra Cash

8 Legit Ways to Make Extra Cash

October 20, 2022

Category

  • Arts
  • Business
  • Economy
  • Entertainment
  • Finance
  • Lifestyle
  • Make Money
  • Politics
  • Real Estate
  • Science
  • Sports
  • Stock Markets
  • Technology
  • Uncategorized
  • World

Follow Us

  • Contact Us
  • Disclaimer
  • DMCA
  • Privacy Policy
  • Terms & Conditions

© 2022 Bulletin Empire - All rights reserved by Bulletin Empire.

No Result
View All Result
  • Home
  • Politics
  • World
  • Business
  • Finance
  • Science
  • Technology
  • Arts
  • Lifestyle
  • Real Estate

© 2022 Bulletin Empire - All rights reserved by Bulletin Empire.