Iraq Reopens North Refinery in Baiji Closed for a Decade 

In this handout picture released by Iraq's Prime Minister's Media Office on February 23, 2024, workers pose for a picture with PM Mohammed Shia al-Sudani (C) during a ceremony held on the occasion of the reopening of North Oil Refinery in Baiji, north of Baghdad. (Iraqi Prime Minister’s Press Office / AFP)
In this handout picture released by Iraq's Prime Minister's Media Office on February 23, 2024, workers pose for a picture with PM Mohammed Shia al-Sudani (C) during a ceremony held on the occasion of the reopening of North Oil Refinery in Baiji, north of Baghdad. (Iraqi Prime Minister’s Press Office / AFP)
TT

Iraq Reopens North Refinery in Baiji Closed for a Decade 

In this handout picture released by Iraq's Prime Minister's Media Office on February 23, 2024, workers pose for a picture with PM Mohammed Shia al-Sudani (C) during a ceremony held on the occasion of the reopening of North Oil Refinery in Baiji, north of Baghdad. (Iraqi Prime Minister’s Press Office / AFP)
In this handout picture released by Iraq's Prime Minister's Media Office on February 23, 2024, workers pose for a picture with PM Mohammed Shia al-Sudani (C) during a ceremony held on the occasion of the reopening of North Oil Refinery in Baiji, north of Baghdad. (Iraqi Prime Minister’s Press Office / AFP)

Iraq reopened on Friday what was once the country's largest oil refinery, a step the government hopes will lead to an end to its dependence on fuel imports.  

The North Refinery in the city of Baiji, 200 kilometers (124 miles) north of Baghdad, was heavily damaged in some of the fiercest battles with the ISIS group after it swept across a third of Iraq in 2014.  

After the facility's full rehabilitation, "the refinery's effective capacity is 250,000 barrels per day," Assem Jihad, the spokesman for Iraq's oil ministry, told AFP.

Two smaller production units at the refinery complex were opened in recent years, but Friday's reopening restored the refinery closer to its previous capacity, with an additional unit capable of producing 150,000 bpd.

"With this accomplishment, we are getting closer to meeting the country's (oil) derivative needs no later than mid next year," Prime Minister Mohammed Shia al-Sudani's office said, adding that doing so would enable Iraq to end its fuel imports.  

The oil-rich country "produces four million barrels a day, but still imports oil derivatives," Sudani added during the inauguration ceremony aired on state television.  

Constructed in 1975, the refinery produced up to 300,000 barrels per day (bpd) before ISIS seized the city of Baiji -- Iraq's one-time industrial hub -- in June 2014.  

Government forces retook the facility and the city in October 2015 during fierce clashes with the extremists, but severe damage meant the refinery remained closed for years.  

Other refineries operate in Iraq, with facilities in the south recording a production capacity of 280,000 bpd, according to Jihad.  

In April, Iraq inaugurated an oil refinery in the central city of Karbala with a capacity of 140,000 bpd.  

Ravaged by decades of conflict, Iraq's crumbling infrastructure and endemic corruption have obstructed reconstruction efforts.  

Despite its tremendous oil wealth, the country remains dependent on imports to meet energy needs.  

Iraq has 145 billion barrels of proven oil reserves amounting to 96 years' worth of production at the current rate, according to the World Bank.  

Crude oil sales make up 90 percent of the Iraqi budget's revenues.



Oil Edges Up on Strong US GDP Data

A pumpjack brings oil to the surface in the Monterey Shale, California, US April 29, 2013. REUTERS/Lucy Nicholson/File Photo
A pumpjack brings oil to the surface in the Monterey Shale, California, US April 29, 2013. REUTERS/Lucy Nicholson/File Photo
TT

Oil Edges Up on Strong US GDP Data

A pumpjack brings oil to the surface in the Monterey Shale, California, US April 29, 2013. REUTERS/Lucy Nicholson/File Photo
A pumpjack brings oil to the surface in the Monterey Shale, California, US April 29, 2013. REUTERS/Lucy Nicholson/File Photo

Oil prices were up slightly on Friday on stronger-than-expected US economic data that raised investor expectations for increasing crude oil demand from the world's largest energy consumer.

But concerns about soft economic conditions in Asia's biggest economies, China and Japan, capped gains.

Brent crude futures for September rose 7 cents to $82.44 a barrel by 0014 GMT. US West Texas Intermediate crude for September increased 4 cents to $78.32 per barrel, Reuters reported.

In the second quarter, the US economy grew at a faster-than-expected annualised rate of 2.8% as consumers spent more and businesses increased investments, Commerce Department data showed. Economists polled by Reuters had predicted US gross domestic product would grow by 2.0% over the period.

At the same time, inflation pressures eased, which kept intact expectations that the Federal Reserve would move forward with a September interest rate cut. Lower interest rates tend to boost economic activity, which can spur oil demand.

Still, continued signs of trouble in parts of Asia limited oil price gains.

Core consumer prices in Japan's capital were up 2.2% in July from a year earlier, data showed on Friday, raising market expectations of an interest rate hike in the near term.

But an index that strips away energy costs, seen as a better gauge of underlying price trends, rose at the slowest annual pace in nearly two years, suggesting that price hikes are moderating due to soft consumption.

China, the world's biggest crude importer, surprised markets for a second time this week by conducting an unscheduled lending operation on Thursday at steeply lower rates, suggesting authorities are trying to provide heavier monetary stimulus to prop up the economy.