Oil prices dip as Iraq raises exports
May 30 2016 01:39 PM
Iraqi oilfield
Iraq is the latest Middle East oil producer to raise its exports quota

Reuters/London

* Iraq joins key producers in fight for market share
* OPEC members unlikely to agree on cuts this week
* U.S production declines to lowest since Sept. 2014


Oil prices dipped to around $49 a barrel on Monday as Iraq raised its crude exports target ahead of an Opec meeting while Canadian production was set to restart after huge wildfires.
Attention turned to a meeting by the Organisation of the Petroleum Exporting Countries (Opec) in Vienna this week, although most analysts did not expect any changes in the group's production.
While the group has been unable to agree on an output freeze in an effort to support prices, Iraq was the latest Middle East producer to raise its exports quota ahead of the meeting, supplying 5mn barrels of extra crude to its partners in June.
Brent crude futures were at $48.97 a barrel at 0959 GMT, down 35 cents in a third straight day of declines.
US West Texas Intermediate (WTI) crude futures were trading at $49.13 per barrel, down 20 cents.
The strengthening of the dollar on higher expectations for a near-term US interest rate hike further weighed on greenback-priced commodities.
Trade was however limited due to public holidays in Britain and the United States, where Monday's Memorial Day is seen as the traditional start of US peak demand summer driving season.
Vienna-based consultancy JBC Energy said global oil demand between January and April 2016 rose by 1.5mn barrels per day from a year earlier, stronger than many forecasts, driven by strong consumption in the United States, China and India.
US crude output also declined to its lowest since September 2014 after oil drillers cut rigs for a ninth week in the last 10 despite a recent rally in oil prices.
An expected rise in Canadian oil sands production also weighed on WTI, traders said. Oil producer Suncor Energy is planning to ramp up output at its fields in Alberta this week after it was forced to shut them down earlier in May due to massive wildfires.
Outages due to wildfires in Canada and unrest in Libya and Nigeria have helped push oil prices to a seven-month high in recent weeks.



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