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.



Oil up 1% on Potential for US-China Talks, Iraq Output Cut Plan

OPEC logo is seen in this illustration taken, October 8, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
OPEC logo is seen in this illustration taken, October 8, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
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Oil up 1% on Potential for US-China Talks, Iraq Output Cut Plan

OPEC logo is seen in this illustration taken, October 8, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
OPEC logo is seen in this illustration taken, October 8, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

Oil prices rose around 1% on Wednesday, as the market drew some strength from the possibility of trade talks between China and the United States and a report that Iraq will cut oil production in April.

Brent crude futures rose 70 cents, or 1.08%, to $65.37 a barrel by 1311 GMT while US West Texas Intermediate crude was also up 70 cents, or 1.14%, at $62.03.

Prices rose after a Bloomberg report quoted an anonymous source as saying that China wants more respect from the Trump administration before it will agree to talks, analysts said.

The source was also quoted as saying China wanted the US to appoint a new primary contact in future talks.

"A de-escalation of the trade war between the US and China would reduce the downside in economic growth prospects and limit the downside for oil demand growth," said UBS analyst Giovanni Staunovo.

Adding to bullish sentiment in the oil market on Wednesday, Iraq aims to cut April output by 70,000 barrels per day in April in the face of pressure to meet its OPEC+ targets, Bloomberg reported.

Price gains, however, were limited by expectations from the International Energy Agency on Tuesday that global oil demand will grow at its slowest for five years in 2025.

The World Trade Organization sharply cut its forecast for global merchandise trade on Wednesday, adding that US tariffs could bring about the heaviest slump since the height of the COVID pandemic.

Concerns over Trump's escalating tariffs, combined with rising output from the OPEC+ group comprising OPEC and allies such as Russia, have dragged oil prices down by about 13% this month.

The uncertainty surrounding trade tensions has led several banks, including UBS, BNP Paribas and HSBC, to cut their crude price forecasts.

Trump has ratcheted up tariffs on Chinese goods, prompting Beijing to impose retaliatory duties on US imports in an intensifying trade war between the world's two biggest economies.

Data on Wednesday showed China's gross domestic product (GDP) grew 5.4% year-on-year in the first quarter, beating the 5.1% expected in a Reuters poll.

"The better than expected performance was precipitated by exporters front-loading shipments ahead of the implementation of US excise duties on Chinese goods and, in all probability, will not be repeated for the rest of the year as the two biggest economies in the world are doing their best to decouple," said PVM Oil analyst Tamas Varga.