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Iraq Invites US Companies to Bid on Oil Field Run by Russia’s Lukoil

A general view shows the West Qurna-2 oilfield in southern Basra, Iraq, April 17, 2017. (Reuters)
A general view shows the West Qurna-2 oilfield in southern Basra, Iraq, April 17, 2017. (Reuters)
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Iraq Invites US Companies to Bid on Oil Field Run by Russia’s Lukoil

A general view shows the West Qurna-2 oilfield in southern Basra, Iraq, April 17, 2017. (Reuters)
A general view shows the West Qurna-2 oilfield in southern Basra, Iraq, April 17, 2017. (Reuters)

Iraq's oil ministry announced on Monday that it had invited US companies to bid on an oil field which had been operated by the now American-sanctioned Russian company Lukoil for years.

The oil ministry said in a statement it had taken "all necessary measures to directly and exclusively invite several major American oil companies... to submit bids" to take over the management of the West Qurna 2 in southern Iraq, which is one of the world's largest oil fields according to Lukoil.

An oil ministry official told AFP "the winner takes over as operator instead of Lukoil".

The ministry added that "transferring management of the West Qurna 2 field to an American oil company would benefit mutual interests, strengthen global market stability, and maintain Iraq's oil production".

Lukoil was awarded the contract to develop the field in 2009, and five years later it started production, according to the Russian company's website.

US President Donald Trump announced in October sanctions against Russian oil majors Lukoil and Rosneft, which came into force on November 21.

Those moves -- the most powerful by Trump against Russia over the Ukraine war -- have already seen major buyers of Russian oil scramble to find alternative suppliers.

In recent weeks, reports emerged in Iraq about Lukoil's ability to continue running the West Qurna 2 field.

Several oil experts told AFP that US oil giant ExxonMobil might be the one to replace Lukoil, but the company declined AFP's request for comment.

In October, ExxonMobil returned to Iraq after a two-year absence, reaching an initial agreement that could pave the way for developing the Majnoon field in the southern province of Basra.

Authorities in oil-rich Iraq, which recently regained a semblance of stability, hope to attract investment, notably from US companies, across various sectors of the economy.

Iraq is a founding member of the OPEC cartel, and crude oil sales make up 90 percent of the country's budget revenues. It currently exports 3.4 million barrels per day.

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US Will Replenish Every Barrel of Oil It Releases from Strategic Petroleum Reserve, Energy Secretary Says

US Secretary of Energy Christopher Wright testifies during a US Senate Armed Services Committee hearing on Capitol Hill in Washington, DC, US, May 13, 2026. (Reuters)
US Secretary of Energy Christopher Wright testifies during a US Senate Armed Services Committee hearing on Capitol Hill in Washington, DC, US, May 13, 2026. (Reuters)
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US Will Replenish Every Barrel of Oil It Releases from Strategic Petroleum Reserve, Energy Secretary Says

US Secretary of Energy Christopher Wright testifies during a US Senate Armed Services Committee hearing on Capitol Hill in Washington, DC, US, May 13, 2026. (Reuters)
US Secretary of Energy Christopher Wright testifies during a US Senate Armed Services Committee hearing on Capitol Hill in Washington, DC, US, May 13, 2026. (Reuters)

The US will replenish every barrel of oil it releases from the Strategic Petroleum Reserve, Energy Secretary Chris Wright ‌said Friday ‌at an event in Sabine ‌Pass, ⁠Texas.

"We're releasing oil ⁠now, and for each barrel we're releasing, we're going to get at least 1.2 barrels of oil back into the reserve. We'll leave it fuller than when we started," he said.

The Trump administration wants to ‌do everything it ‌can to lower gasoline prices, Wright said.

"We ‌understand Americans today are paying higher ‌prices than they would like, higher prices than we would like to see, but it's simply essential to end Iran's ability to ‌get a nuclear bomb," he said.

"It's causing some short-term disruption. ⁠This ⁠will pass and gasoline prices will come right back down," he said.

Wright said that the US could "easily" double its natural gas exports without increasing the domestic price.

"There's just an enormous, simply astounding amount of natural gas," he said, noting that the country currently exports about 20% of the natural gas it produces.

Business

Trump Says Did Not Discuss Tariffs During Summit with Xi

Shipping containers are piled at the Port of Los Angeles, California, on May 9, 2026. (AFP)
Shipping containers are piled at the Port of Los Angeles, California, on May 9, 2026. (AFP)
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Trump Says Did Not Discuss Tariffs During Summit with Xi

Shipping containers are piled at the Port of Los Angeles, California, on May 9, 2026. (AFP)
Shipping containers are piled at the Port of Los Angeles, California, on May 9, 2026. (AFP)

US President Donald Trump said Friday he did not bring up the issue of tariffs during a landmark summit with Chinese counterpart Xi Jinping.

Returning to Washington after making what he called "fantastic trade deals" with Beijing, Trump said on tariffs: "We didn't discuss those... It wasn't brought up."

The pair had been widely expected to discuss extending the one-year tariff truce reached during their last meeting in October in South Korea.

The truce brought a pause to a blistering trade war that had seen tariffs on many goods exceed 100 percent.

Conditions have shifted since.

The deal saw Washington maintain some tariffs over China's alleged role in global fentanyl supply chains and accusations of unfair practices.

But the US Supreme Court in February struck down many of Trump's duties, including those imposed over drug trafficking.

The White House quickly moved to impose a 10-percent global tariff using temporary powers, and opened investigations that could lead to more lasting duties.

The 10-percent global tariff has also been challenged in US courts.

Trump had arrived in Beijing earlier this week seeking to seal accords in sectors including agriculture, aviation and artificial intelligence.

After the first day wrapped, Trump said Xi had agreed to help open the Strait of Hormuz, as well as buy Boeing jets and American oil and soybeans.

But there have been no formal announcements, and the Chinese foreign ministry would not confirm or deny Trump's statements when asked on Friday afternoon.

Business

Britain's Pound, Stocks and Bonds Fall on Political Uncertainty, Global Inflation Angst

A view of 10 Downing Street in London, Britain, 14 May 2026. EPA/NEIL HALL
A view of 10 Downing Street in London, Britain, 14 May 2026. EPA/NEIL HALL
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Britain's Pound, Stocks and Bonds Fall on Political Uncertainty, Global Inflation Angst

A view of 10 Downing Street in London, Britain, 14 May 2026. EPA/NEIL HALL
A view of 10 Downing Street in London, Britain, 14 May 2026. EPA/NEIL HALL

British government bonds, stocks and sterling fell on Friday, as domestic political uncertainty clashed with global worries about an inflationary shock, leaving UK assets in the mire.

Sterling fell to a five-week low and is down almost 2% against the dollar this week, set for its biggest weekly drop since November 2024.

British Prime Minister Keir Starmer was in a battle to hold on to power after his health minister Wes Streeting resigned from government, while others positioned themselves to challenge his leadership, following disastrous local election results last week.

Markets are concerned that a ⁠new leader may ⁠be willing to loosen fiscal policy more, with British government borrowing costs up sharply again and UK bank stocks selling off on Friday.

Greater Manchester Mayor Andy Burnham has been offered a path for a possible leadership challenge after another Labour lawmaker said he would resign his parliamentary seat. If Burnham were to win the seat, he could then challenge for ⁠the party leadership.

"Market's fear is that Burnham would be more left leaning, and we could see further increase in deficits," Reuters quoted Jefferies economist Mohit Kumar as saying.

"Our base case is one of a managed exit for Starmer and Burnham likely becoming the next PM," he added.

The domestic political drama has coincided with another rise in energy prices on Friday and growing evidence that the economic damage from the Iran war is hurting.

US inflation data this week has shown consumers and factories are starting to see big increases in price pressures as a result of the war, which has ⁠pushed up the ⁠price of crude by over 50%.

The pound has tended to suffer against the dollar when tensions between Washington and Tehran flare or oil prices rise, given Britain's dependence on energy imports and the economy's sensitivity to higher fuel costs.

It was last down 0.3% on the day at $1.3364 after earlier touching $1.3335, its lowest level in over five weeks.

British bond yields jumped across the curve. The 10-year yield was last up almost 12 basis points (bps) at around 5.11%. Bond yields move inversely with prices.

Stocks also fell. The blue-chip FTSE 100 was last down 0.6%, while the more domestic-oriented FTSE 250 index of midcap stocks was down 1.1%.

UK banks were also down sharply, with Barclays and Lloyds down over 2% each.