Reuters: Iraq will be issued five million barrels a day next month

2016/5/30 13:46

[Oan- follow-up]

Sources in the oil sector, she told Reuters that Iraq's five million extra barrels of crude oil to its customers will be issued in June to join it to other producers in the Middle East to strengthen its market share in the days of this week's OPEC meeting before.

The targeting of Iraq's second-largest producer in the Oopk- already record export volumes of crude from the southern ports next month to reach 3.47 million barrels per day.
And it intends to Saudi Arabia, Kuwait, Iran and the UAE to increase supplies in the third quarter.

It receded take the expectations of OPEC decision to curb supplies in the scheduled meeting on Thursday due to the recovery of world oil prices from the lowest level in 12 years to more than $ 50 a barrel and in the light of competition between Saudi Arabia and Iran.

Additional exports has offset the contraction of production and supply disruptions in other places but new supplies may also retard rebalance the global market is still saturated with oil.
Said Victor Shum, energy consulting firm official downstream in [IHS] "OPEC certainly increase supplies and practiced strategy puts its market share in the first place," referring to the Saudi-led effort to strengthen OPEC production in order to regain market share.

He added that the extra oil from Saudi Arabia and Iraq could lead to a slowdown in rebalancing the global market but may offset supplies from elsewhere and strong seasonal demand crashes.
According to three sources familiar with the matter is that the Iraqi oil marketing company SOMO] has allocated five million additional barrels of Basra Light crude download June partners in upstream activities, including PetroChina and Eni and Lukoil.

The foreign companies get oil dues under a technical service contracts with SOMO but payments were delayed after that caused the decline in the oil price pressure on Iraq's budget.
A source said the oil sector in the Gulf, said the extra oil was decided "because of the technical service contractors under pressure."

He added that Iraq also committed to pay the dues of contractors under the terms of a loan from the International Monetary Fund.

And additional supplies come as a result of the expansion and Alortaua Allhis fields in southern Iraq. Iraq wants to increase its oil production by up to a third by 2020.

A source in one of the three companies that got the oil that additional million barrels of Basra Light crude sold after two hours of notification of sumo, which refers to the demand for Iraqi crude strength amid expectations of higher official selling prices in July.

Traders said the premium price for the immediate supply of June dropped to between 40 and 80 cents a barrel, after over $ in May due to increased export volume and high official selling prices in June.