IRAQ WANTS 9 MBD
TOGY wrote, OPEC's second-largest producer, Iraq, said on Sunday it should be exempt from oil production cuts on the grounds that its production has already been decimated by violence, sending jitters through the market.
"We are fighting a vicious war against IS," Oil Minister Jabar Ali Al Luaibi told journalists, explaining that his country should be entitled to the same exemption as Libya and Nigeria, whose output has also been slashed by armed conflict.
Iraqi officials added that they were hoping October's production would be slightly higher than September's, which stood at more than 4.77 million bopd.
"We should be producing 9 million if it wasn't for the wars," said Falah Al Amri, the director general of state oil marketing company SOMO.
OPEC agreed last month to reduce production by some 200,000-700,000 bopd in order to drive prices up. Yet continued haggling, both inside the organisation and with major non-OPEC producers such as Russia, has led many analysts to warn of risks that the deal, which is expected to be signed next month, may not be implemented properly.
Oil prices took a hit on Monday after the news from Iraq. By the early afternoon, Brent crude futures on London's ICE Futures exchange were down USD 0.32 since Friday's closing of USD 51.78, while December light, sweet futures slipped some USD 0.53 to USD 51.46 on the New York Mercantile Exchange.
The increasing number of operational rigs in the US, up by 11 this month, is contributing to the downward pressure on the prices.
"We should see rig counts continue to increase in the wake of the recent price rally," Morgan Stanley representatives told.
Nevertheless, pundits say the markets may be slowly shifting toward rebalancing the oversupply of the past two years. "The market moved into a small deficit in Q3, will remain so in Q4 and then the deficit will expand significantly in 2017," a Sunday Barclays bank note to clients quoted.
Recent developments that could signal upward pressure on the oil prices included a general statement of co-operation after the meeting between Russian and Gulf energy ministers in Riyadh on Sunday, as well as comments by the Iranian Deputy Oil Minister Amir Hossein Zamaninia, who told journalists that Tehran would encourage other OPEC members to co-operate in order to bring the price back up to USD 55-60 a barrel.
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LUKOIL - The plan is based on the conservative $50 per barrel oil price scenario. Sustainable hydrocarbon production growth is planned in the Upstream business segment along with the growth in the share of high-margin projects in the overall production. In the Downstream business segment, the focus is on the improvement of operating efficiency and selective investment projects targeted at the enhancement of product slate.
BP - BP will acquire on completion a 43% equity share in Lightsource for a total consideration of $200 million, paid over three years. The great majority of this investment will fund Lightsource’s worldwide growth pipeline. The company will be renamed Lightsource BP and BP will have two seats on the board of directors.
REUTERS - Brent crude was up 69 cents, or 1.1 percent, at $64.03 a barrel by 0743 GMT. It had settled down $1.35, or 2.1 percent, on Tuesday on a wave of profit-taking after news of a key North Sea pipeline shutdown helped send the global benchmark above $65 for the first time since mid-2015. U.S. West Texas Intermediate crude was up 45 cents, or 0.8 percent, at $57.59 a barrel.
ROSATOM - On December 10, 2017, the construction start ceremony took place at the Akkuyu NPP site under a limited construction licence issued by the Turkish Atomic Energy Agency (TAEK). Director General of the ROSATOM Alexey Likhachev, and First Deputy Minister of Energy and Mineral Resources of the Turkish Republic, Fatih Donmez, took part in the ceremony.