Iraq: OPEC+ Is Working to Limit Challenges Affecting Oil Market Stability

Oil rigs in an American field. (AFP)
Oil rigs in an American field. (AFP)
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Iraq: OPEC+ Is Working to Limit Challenges Affecting Oil Market Stability

Oil rigs in an American field. (AFP)
Oil rigs in an American field. (AFP)

The OPEC+ group of oil producers is working to limit the challenges affecting the stability of the global oil market, Iraq's oil minister Hayan Abdel-Ghani said on Saturday.

Voluntary output cuts by OPEC+ since November have allowed member states like Iraq to achieve the highest rates of balance between supply and demand, helping them achieve stability in the global oil market, its oil ministry has said.

"Iraq's oil ministry is keen to achieve an increase in revenues derived from its oil export revenues despite the challenges facing global markets," Abdel-Ghani added.

During the Libya Energy and Economic Summit 2024 in Tripoli, Libya’s Oil Minister Mohamed Oun underscored that the demand for fossil fuels is anticipated to surge in the coming decades.

Oun highlighted that a significant portion, approximately 30%, of Libya's territory remains unexplored, emphasizing the nation's considerable reserves of shale oil and gas.

The minister stressed that any transformation in the energy sector should align with the specific conditions of African countries and agree with global standards.

He stated, "We are not opposed to fostering a clean environment."

Oun hoped that efforts to mitigate the environmental impact of fossil fuels would run concurrently with the development of alternative energies, deeming it the "ideal solution."

Head of Libya's Government of National Unity (GNU) Abdulhamid al-Dbeibah announced that his government had formulated plans aimed at doubling both oil and gas production while focusing on the enhancement of oil field infrastructure.

“The Government of National Unity has sought to create mission programs to revitalize the national economy in general and address difficulties in the fields of development, oil, gas, and particularly in electrical energy,” al-Dbeibah said.

Oil rose 1% on Friday as an increasing number of oil tankers diverted course from the Red Sea following overnight air and sea strikes by the US and Britain on Houthi targets in Yemen after attacks on shipping by the Iran-backed Houthis.

Brent crude futures settled 88 cents, or 1.1%, higher at $78.29 a barrel. The session high was up over $3 to more than $80, its highest this year.

US West Texas Intermediate crude futures climbed 66 cents, or 0.9%, to $72.68, paring gains after touching a 2024 high of $75.25.

While the diversions were expected to push up the cost and time it takes to transport oil, supplies have not yet been impacted, analysts and industry experts noted, easing some of the earlier gains in prices.

For the week, Brent was down 0.5% and WTI 1.1% lower.

Tanker companies Stena Bulk, Hafnia, and Torm said they had decided to halt all ships heading towards the Red Sea.

However, Suez Canal Authority head Osama Rabie said traffic is regular in both directions, and there is no truth to reports that navigation has been suspended due to developments in the Red Sea.

The US and UK strikes come in retaliation for Houthi attacks since October on commercial vessels in the Red Sea in a show of support for Hamas in its fight against Israel in Gaza.

The escalation has fed worries the Israel-Hamas war could widen into a broader conflict in the Middle East, disrupting oil supplies. Iran seized a tanker on Thursday carrying Iraqi crude south of the strait destined for Türkiye.

Houthi militants also mistakenly targeted a tanker carrying Russian oil in a missile attack on Friday off Yemen, British maritime security firm Ambrey said.



Aramco, TotalEnergies, SIRC Mull Establishment of Sustainable Aviation Fuel Plant in Saudi Arabia

The collaboration seeks to leverage each company's expertise to develop an SAF plant in the Eastern Province of the Kingdom. SPA
The collaboration seeks to leverage each company's expertise to develop an SAF plant in the Eastern Province of the Kingdom. SPA
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Aramco, TotalEnergies, SIRC Mull Establishment of Sustainable Aviation Fuel Plant in Saudi Arabia

The collaboration seeks to leverage each company's expertise to develop an SAF plant in the Eastern Province of the Kingdom. SPA
The collaboration seeks to leverage each company's expertise to develop an SAF plant in the Eastern Province of the Kingdom. SPA

Saudi Aramco, TotalEnergies, and the Saudi Investment Recycling Company (SIRC) have said they signed a joint development and cost-sharing agreement, aiming at evaluating the potential development of a sustainable aviation fuel (SAF) plant in the Kingdom.
The announcement coincided with French President Emmanuel Macron's official visit to the Kingdom on Tuesday. The collaboration seeks to leverage each company's expertise to develop an SAF plant in the Eastern Province of the Kingdom.
The evaluation phase will focus on utilizing innovative engineering and technological solutions to recycle and process local waste or circular economy by-products, including cooking oils and animal fats, to produce SAF.
President and CEO of Saudi Aramco Amin Hassan Nasser pointed out that addressing aviation emissions through low-carbon alternatives has become imperative in light of the expected growth in air travel demand, highlighting the crucial role of mega global energy companies like Saudi Aramco and TotalEnergies.

"Addressing transportation emissions requires a wide range of approaches, and Aramco is committed to finding innovative solutions and contributing to global efforts to reduce emissions," he said.
Underlying the solid partnership between Saudi Aramco and TotalEnergies, Nasser said: "Our goal is to establish a sustainable aviation fuel plant in the Kingdom with SIRC, benefiting both domestic and international airlines, particularly as the tourism and aviation sectors expand."
Chairman and CEO of TotalEnergies Patrick Pouyanné expressed his enthusiasm for collaborating with Saudi Aramco and SIRC to assess SAF production in the Kingdom. He also stressed the importance of advancing efforts to decarbonize air transport.
SIRC CEO Ziyad Al-Shiha noted that the partnership aligns with the company's commitment to supporting the ambitious sustainability goals of the Saudi Vision 2030 and the Saudi Green Initiative, saying: "We are focusing on increasing waste-to-resource conversion rates, and this new collaboration with Saudi Aramco and TotalEnergies to assess the feasibility of a renewable aviation fuel plant is a significant step toward advancing the circular economy in the Kingdom."