tag

Iraq hopes fellow producers will reconsider its oil export quota to better reflect its production capacity, Prime Minister Mohammed Shia al-Sudani said Saturday, a day ahead of an Opec+ meeting in a rare public comment by a senior Iraqi official.Iraq, the group's largest overproducer, is under pressure from the Organisation of the Petroleum Exporting Countries to cut output to compensate for having produced more than its agreed volume.It is among countries that submitted plans in April to make further oil output cuts to compensate for pumping above agreed quotas.Iraq's oil exports averaged 3.38mn barrels per day in August, according to the oil ministry. September average oil exports are expected to be between 3.4mn bpd and 3.45mn, the chief of the state oil company SOMO said on Saturday.Opec counts oil flows from Kurdistan as part of Iraq's quota.Al-Sudani previously appealed publicly for a review of Iraq's production quota in late 2022.Opec+, which includes Opec members plus Russia and other allies, has reversed its strategy of output cuts from April and has already raised quotas by some 2.5mn barrels per day, about 2.4% of world demand.The move is intended to boost market share and follows pressure from US President Donald Trump to lower oil prices.Eight countries from Opec+ are set to meet online today to consider a further output hike.Another output boost would mean Opec+, which pumps about half of the world's oil, would be starting to unwind a second layer of cuts of about 1.65mn barrels per day, or 1.6% of world demand, more than a year ahead of schedule.Responding to a question about Sunday's meeting, Iraq's Opec representative Ali Nazar said attention was focused on balancing the market, whether through increases, maintaining current production, or cuts.Separately, al-Sudani also said there would be arrangements to facilitate the entry of major oil companies to Iraq.In the past two years, Iraq has signed agreements with oil majors that had previously retreated from the country, including Chevron, France's TotalEnergies and UK oil major BP.

OilOil prices fell on Friday as a weak US jobs report dimmed the outlook for energy demand, while swelling supplies may grow further after Opec and allied producers meet over the weekend. Brent crude futures settled at $65.50 a barrel, down $1.49. US WTI crude finished at $61.87, down $1.61.On Wednesday, Reuters reported that eight Opec+ producers would consider raising production further at a meeting on Sunday. US crude inventories rose 2.4mn barrels last week, rather than falling as analysts expected. US nonfarm payrolls increased by only 22,000 jobs last month after rising by an upwardly revised 79,000 in July, the Labor Department's Bureau of Labor Statistics said in its closely watched employment report on Friday.The weak jobs report will put pressure on the US Federal Reserve to cut interest rates. Expectations are growing that Opec+ – the Organisation of the Petroleum Exporting Countries and allies like Russia – will decide at Sunday's meeting to push more barrels into the market to regain market share.The group would be starting to unwind a second layer of output cuts of about 1.65mn barrels per day, or 1.6% of world demand, more than a year ahead of schedule. Meanwhile, US President Donald Trump told European leaders on Thursday that Europe must stop buying Russian oil. Any cuts to Russia's crude exports or other disruption to supplies could push oil prices higher.GasAsian spot liquefied natural gas (LNG) prices held steady last week as regional demand remained muted, while a gas supply deal between Russia and China is seen curbing future LNG shipments from the top Asian importer.Industry sources estimated that the average LNG price for October delivery into Northeast Asia was $11.30 per million British thermal units (mmBtu), up slightly from $11.15 per mmBtu the previous week. Meanwhile, following the first unloading of an LNG cargo from Russia's sanctioned Arctic LNG 2 project in China, Beijing and Moscow this week signed agreements to increase gas supply via the existing Power of Siberia pipeline, and to construct the Power of Siberia 2, though they have yet to agree on pricing.China is sending a clear geopolitical signal that it is willing to receive more Russian gas, reducing LNG dependency from other sources from 2027 and influencing the profitability of other LNG producers. In Europe, the Dutch TTF hub settled at $11.02 per mmBtu, recording a weekly gain of 2.6%. Continued supply growth from the US helped to offset the decline seen from Nigeria. This also comes at a time where imports into Europe have seen slight declines as subsided heatwaves and easing fears over storage added further bearish tailwinds into the market. The US arbitrage to Northeast Asia via the Cape of Good Hope narrowed significantly last week, only marginally incentivising US cargo deliveries to Europe.This article was supplied by the Abdullah bin Hamad Al-Attiyah International Foundation for Energy and Sustainable Development.

Opec+ leader Saudi Arabia wants the group to consider reviving more oil production ahead of its scheduled return at the end of next year amid a push to reclaim market share, people familiar with the matter said.Key alliance members will hold a video conference on Sunday that will consider what to do with a 1.66mn barrels a day tranche of halted supplies, having just fast-tracked the return of a previous layer over the past five months.No decision has been made, and it’s not clear whether any increase would be agreed as soon as Sunday or only in later months, some of the people said. Saudi Arabia, which drove the accelerated restart in a bid to recapture global market share, wants to further boost production as it seeks to offset lower prices with higher volumes, they said. Any proposal to increase production could run into opposition from other members keen to prop up prices.If it happens, such a move would cement a dramatic Opec+ strategy shift toward defending market share over prices, piling pressure on some member nations, especially those that can’t pump more. Saudi Arabia’s Crown Prince Mohammed bin Salman is set to visit Washington in November to meet President Donald Trump, who’s called for lower fuel prices.A range of options remains possible, including pausing hikes for a period, the people added. The Opec+ alliance is jointly led by Saudi Arabia and Russia.Delegates from the Organisation of the Petroleum Exporting Countries have said Saudi Arabia is eager to claw back sales volumes ceded to rivals like US shale drillers.“Our latest soundings from the group suggest they are very much considering unwinding that final tranche” of halted supply “sooner rather than later,” Livia Gallarati, global crude lead at Energy Aspects Ltd, said in a Bloomberg television interview. In practice, any volumes added to the market would be smaller than pledged because of spare-capacity constraints, she added.Officials in Saudi Arabia weren’t immediately available for comment outside the country’s normal office hours.Further production increases by Opec+ threaten to swell a surplus in the fourth quarter anticipated by forecasters like the International Energy Agency, adding to downward pressure on prices. Even so, oil futures which initially fell when the group began restoring its 2.2mn barrels a day of shuttered supply back in April have actually rallied since.While extra oil would be a boon for consumers and a win for Trump, it’s a financial threat for producers from the US shale industry to Opec+ members themselves.The majority of crude traders surveyed by Bloomberg this week had expected Opec+ to pause before proceeding with any further increases, as global markets are already on track for a surplus this year. That was before Reuters reported the possibility of an increase.Brent futures are down roughly 10% this year, trading around $65.70 a barrel in London on Friday. Goldman Sachs Group Inc predicted in a note that the international benchmark will slump to the low-$50s next year as markets face oversupply.Trump has called for lower prices in order to cushion the cost of living, and tame inflation while he presses the Federal Reserve to reduce interest rates. The president has also said that weaker prices will help him pressure Russia to end its war against Ukraine.Sunday’s meeting is one of the countries’ regular monthly gatherings to review the oil market and adherence with existing supply restrictions.

Oil prices extended losses for a third consecutive session in early trading Friday as markets awaited the outcome of an OPEC+ meeting scheduled for Sunday that will discuss the possibility of further production increases.Brent Crude futures fell 23 cents, or 0.3%, to $66.77 a barrel, while US West Texas Intermediate (WTI) crude dropped 19 cents, or 0.3%, to $63.29. At the upcoming meeting, OPEC+ members will weigh an additional output hike in October. Such a move would begin to unwind a second tranche of production cuts totaling about 1.65 million barrels per day, equivalent to 1.6% of global demand, more than a year ahead of schedule.The group currently accounts for roughly half of the world's oil supply. On the supply side, US crude inventories unexpectedly rose by 2.4 million barrels last week as refineries entered seasonal maintenance. Analysts had forecast a 2-million-barrel draw, while data from the American Petroleum Institute indicated a smaller build of around 600,000 barrels.

Eight Opec+ countries to meet on SundayOpec+ could also pause hikes for October, source saysNo immediate comment received from Opec or Saudi authoritiesEight Opec+ members will consider further raising oil production at a meeting on Sunday, two sources familiar with the discussions said, as the group seeks to regain market share.Opec+ has reversed its strategy of output cuts from April and has already raised quotas by about 2.5mn barrels per day, about 2.4% of world demand, to boost market share and under pressure from US President Donald Trump to lower oil prices.But those increases have failed to bring down oil prices, which traded near $68 a barrel supported by Western sanctions on Russia and Iran, encouraging further production gains in rivals such as the US.Another output boost would mean Opec+, which pumps about half of the world's oil, would be starting to unwind a second layer of cuts of about 1.65mn barrels per day, or 1.6% of world demand, more than a year ahead of schedule.Eight Opec+ countries are due to hold an online meeting on Sunday expected to decide on October output.Opec+ includes the Organisation of the Petroleum Exporting Countries plus Russia and other allies.There is also a chance, some analysts and an Opec+ source said, that Opec+ could pause the increases for October. A final decision has not been made, the Opec+ source said.Opec headquarters and authorities in Saudi Arabia did not immediately respond to requests for comment.Brent crude was trading near $68 on Wednesday, down over 1% on the day but up from a 2025 low of near $58 in April.As well as sanctions, the Opec+ hikes falling short of the pledged amounts have also supported prices, analysts have said.Until April, Opec+ had been curtailing production for several years to support oil prices.At their last meeting in August, the eight members raised production by 547,000 bpd for September, completing a total increase in output for the year of 2.5mn bpd. That included a 300,000 bpd additional production allocation for the UAE.The next output cut layer of 1.65mn bpd is in place until the end of 2026, as is another 2mn bpd of cuts by the whole group.

Oil prices fell on Friday as traders looked toward weaker demand in the US, the world's largest oil market, and a boost in supply this autumn from OPEC and its allies. Brent crude futures for October delivery, which expired on Friday, settled at $68.12 a barrel, down 50 cents.West Texas Intermediate crude futures settled at $64.01, down 59 cents. The market was in part shifting its focus toward next week's OPEC+ meeting.Crude output has increased from OPEC+, as the group has accelerated output hikes to regain market share, raising the supply outlook and weighing on global oil prices. Meanwhile, the US summer driving season ends on Monday's Labor Day holiday, signalling the end of the highest demand period in the country, which is the largest fuel market.Crude supply increases have yet to reach the US market, raising the prospect of a tighter balance between supply and demand. Earlier in the week, prices rose on news of Ukrainian attacks against Russian oil export terminals, but reports of ceasefire discussions between Ukraine’s European allies helped ease the upward pressure.US crude inventories for the week ending August 22 posted larger-than-expected draws, suggesting late-summer demand remained firm, especially across industrial and freight-related sectors. Meanwhile, analysts noted that investors are closely watching India’s response to US pressure to curb purchases of Russian oil.GasAsian spot LNG prices slipped last week on muted demand and ample supply, with the delivery of an LNG cargo from a sanctioned Russian project adding to supply concerns. The average LNG price for October delivery into Northeast Asia was at $11.15 per mmBtu, down from $11.40 per mmBtu last week, industry sources estimated. LNG market sentiment remained calm with arbitrage for US cargoes still Europe-bound.Major Northeast Asian buyers have limited interest in prompt cargoes due to high stocks and a relatively loosened Pacific balance. The risk of Russia's Arctic LNG 2 ramping up LNG exports has significantly increased with the first unloading of a cargo from the facility in China.A full, sustained ramp-up of the first two trains at Arctic LNG 2 is a significant downside risk to Asian spot LNG prices. The Arctic LNG 2 cargo delivery has weighed on Chinese demand expectations for spot LNG, freeing up spot supply elsewhere. Additional supply from new projects is putting downward pressure on prices.Besides ramp-ups from Plaquemines in the US, new projects like LNG Canada, Greater Tortue Ahmeyim offshore West Africa and Congo LNG could add around 0.5mn tons per month in July and August, while the return of Norway's Hammerfest LNG after being offline since May represents a recovery of around 400,000 tons per month. In Europe, the Dutch TTF hub settled at $10.74 per mmBtu, recording a weekly loss of more than 6%.