... proposed the creation of a company to manage export operations and oil production in the territory of Iraqi Kurdistan, which would be administratively subordinate to both the KRG and the Iraqi Ministry of Oil. The very attempts to jointly regulate the oil industry are extremely important for the country’s stability and economy. However, the confrontation between the United States and Iran in the region remains an even more pressing problem for Iraq. As per
S&P Global Platts
, “Iraq is under increasing pressure from Washington to ramp up gas production in order to wean itself off gas and electricity imports from Iran, which has ...
... the opportunity to put additional pressure on their main adversary, Saudi Arabia. On September 14, with the help of drones and missiles, they delivered a strike against two large oil processing facilities in Saudi Arabia, which forced Riyadh to
cut
oil production by more than half – 5.7 million barrels per day fewer than the usual 9.8 million barrels.
Despite the wave of accusations against Iran following the strikes, there is reason to believe that the Houthis are capable of organizing such an attack all on their own since they had previously shown cruise missiles with the necessary range to the public. However, in all fairness, we should ...
... Iran are lifted.
Another important factor is Iran’s domestic oil consumption which has been constantly growing. From 2012–2018 it increased by 8 percent to almost 2 mbd, which did not allow Tehran to increase its oil exports. To keep exporting more oil Iran needs to constantly increase its oil production to satisfy both domestic and foreign needs.
And finally, the U.S. is reluctant to restore Iran’s full access to U.S. dollars as it is one of the few effective tools it has for Iran. This is why, even ...
... A peace process in Syria is gaining momentum, and ISIS’ defeat is getting closer. However, Middle Eastern problems remain massive. Among them we have selected three main issues, which are also interconnected: the hostility between Saudi Arabia and Iran, Sunni and Shia; the stabilisation of oil prices, which are now rising but remain — as always — difficult to predict; the presence of terrorism, which, despite ISIS’ decline, is still a problem well beyond the region.
Starting with the geopolitics, there clearly are two main contenders....
... Iraq, Lebanon and Yemen. It is the modern “Cold War” of the Middle-East. One of the reasons Saudi Arabia did not join the Astana initiative is that Iran is a founder. The Saudis does not fear a Russian influence in Syria, but they rather fear an Iranian one. Plus, Russians and Saudis have a lot to discuss and cooperate such as Oil and Gas markets, they have to deal openly at some point. It is in none favour to go into a confrontation in Syria or the Middle-East. As a result, the Saudis had started to view the Russian role in the Middle-East as stability guaranteer. The Saudis ...
... Korea are the biggest importers of Iranian crude, and they were at the forefront to increase imports from Iran in 2016. The European market followed their lead. Bloomberg reported that in January 2017 European states
bought
600 thousand barrels of Iranian oil per day. No longer than a year ago, this figure was equal to zero.
Not only is Teheran boosting its exports to old, established clients, but it is also testing new export destinations. Thus, 2016 saw the first Iranian oil cargo
delivered
to Poland,...
... energy partnership.
To begin with, the possibility of Russia working with OPEC as a whole is fairly low, since that organisation is beset by internal dissent. The primary line of confrontation lies between Saudi Arabia's position, advocating a freeze on oil production, and the plans by Iran and Iraq to increase output. It was the Saudis' unwillingness to agree a freeze unless Iran joined the agreement that
scuppered the Doha talks
in April 2016. A similar result likely awaits the OPEC meeting on 30 November, at which the member nations ...
... damage to the existing oil fields in Iran. The Iranian Constitution, which prohibits involving private and foreign companies in extracting natural resources, is another factor that can slow the pace of oil production.
In the next two or three months, Iranian oil is unlikely to arrive on the market: the agreement covers a complete lifting of sanctions only after foreign experts have inspected the country’s nuclear facilities.
There is little doubt that, in the next two or three months, Iranian oil is ...
... post-Soviet output record.
Once the energy sanctions against Iran are lifted the country’s goal will be to empty existing storage facilities to revitalize the cash-strapped economy.
Now that a nuclear deal has been reached the level to which Iran’s oil production will grow causes most concerns among experts. Iran has stated that once sanctions are lifted the country could increase its oil exports by one million barrels from 1.2mln bbl a day to 2.3mln bbl, which constitutes 1% of global production....
... Yemen, a minor oil producer strategically situated in a region where more than half of world oil reserves are located, geopolitics becomes a long-term market factor. Price hikes there have more to do with a possible standoff between Saudi Arabia and Iran, rather than Yemen itself.
Disruption in oil transit
REUTERS/Khaled Abdullah/Pixstream
Leonid Issaev:
Yemen: Following in Afghanistan’s Footsteps?
Yemen controls part of the strait of Bab el-Mandeb, a bottleneck that separates the Red Sea and the Arabian Sea. In 2013,
3.8 million barrels ...
