Iraqi Oil Minister Says Oil at $75-$80 a Barrel Fair to Producers, Consumers

Oil prices fell during yesterday's trading near $80 a barrel (Reuters)
Oil prices fell during yesterday's trading near $80 a barrel (Reuters)
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Iraqi Oil Minister Says Oil at $75-$80 a Barrel Fair to Producers, Consumers

Oil prices fell during yesterday's trading near $80 a barrel (Reuters)
Oil prices fell during yesterday's trading near $80 a barrel (Reuters)

Iraq's oil minister said that oil at $75-$80 a barrel was a fair price for producers and consumers, adding that his country was seeking to expand its production and export capacity in the coming years.

Oil prices traded above $83 a barrel on Wednesday, their highest since October 2018, amid a global energy crunch and a decision by the Organization of the Petroleum Exporting Countries and its allies to stick to a small increase in production next month.

Ihsan Abdul Jabbar told the Energy Intelligence Forum that Iraq aims to raise its oil production capacity by some 3 million barrels per day (bpd) to 8 million bpd by the end of 2027.

The OPEC member is also targeting raising its crude export capacity to 6 million bpd from 4 million bpd now by the end of 2024.

He added that talks with US oil major Chevron Corp (CVX.N) on developing the Nassiriya oilfield, which is estimated to hold about 4.4 billion barrels of crude, could reach final agreement in the next few weeks.

He said that the Iraqi National Oil Company (INOC) will hold a stake of no less than 40 percent in the joint partnership with Total Energies (TTEF.PA) in a project the French major is developing in the country.

Total Energies will build four energy projects in southern Iraq under a $27 billion deal signed in Baghdad last month.

In a related context, US crude oil and gasoline inventories rose last week as production rebounded as more offshore oil facilities returned from last month's storm-related shut-ins, the Energy Information Administration said on Wednesday.

Crude inventories rose by 2.3 million barrels in the week to Oct. 1 to 420.9 million barrels, compared with analysts' expectations in a Reuters poll for a 418,000-barrel drop.

Crude stocks at the Cushing, Oklahoma, delivery hub rose by 1.5 million barrels in the last week, EIA said.

Refinery crude runs rose by 329,000 barrels per day in the last week, EIA said. Gasoline inventories also increased by 3.3 million barrels to 225.1 million barrels over that period.

Brent hit $83.46 a barrel, reaching its highest level since October 2018. WTI also hit its seven-year-high level with $79.78 a barrel.



Oil Steadies as Market Awaits Fresh US Tariffs

FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
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Oil Steadies as Market Awaits Fresh US Tariffs

FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo

Oil prices were little changed on Wednesday as traders remained cautious ahead of US tariffs due to be announced at 2000 GMT, fearing they could exacerbate a global trade war and dampen demand for crude.

Brent futures were down 7 cents, or 0.09%, at $74.42 a barrel by 0858 GMT. US West Texas Intermediate crude futures fell 5 cents, or 0.07%, to $71.15.

The White House confirmed on Tuesday that President Donald Trump will impose new tariffs on Wednesday, though it provided no detail on the size and scope of the trade barriers, according to Reuters.

Trump's tariff policies could stoke inflation, slow economic growth and escalate trade disputes.

"Crude prices have paused last month's rally, with Brent finding some resistance above $75, with the focus for now turning from a sanctions-led reduction in supply to Trump's tariff announcement and its potential negative impact on growth and demand," said Ole Hansen, head of commodity strategy at Saxo Bank.

Traders will be watching for levies on crude imports, potentially driving up prices of refined products, he added.

For weeks Trump has touted April 2 as "Liberation Day", bringing new duties that could rattle the global trade system.

The White House announcement is scheduled for 4 p.m. ET (2000 GMT).

"The balance of risk lies to the downside, given that weaker than expected tariff measures are unlikely to drive a significant rally in Brent, while stronger than expected measures could trigger a substantial selloff," BMI analysts said in a note.

Trump has also threatened to impose secondary tariffs on Russian oil and on Monday he ramped up sanctions on Iran as part of his administration's "maximum pressure" campaign to cut its exports.

"Markets likely to be volatile ahead of the final announcements on tariffs and the scale of them. The threat of secondary tariffs on Russian crude continues to provide some support for prices, with more downside risk at present around tariff uncertainty," said Panmure Liberum analyst Ashley Kelty.

US oil and fuel inventories painted a mixed picture of supply and demand in the world's biggest producer and consumer.

US crude oil inventories rose by 6 million barrels in the week ended March 28, according to sources citing the American Petroleum Institute. Gasoline inventories, however, fell by 1.6 million barrels and distillate stocks were down by 11,000 barrels, the sources said.

Official US crude oil inventory data from the Energy Information Administration is due later on Wednesday.