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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)
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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.

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Trump Bails 'Big Progress' in Japan Tariff Talks

Japanese Prime Minister Shigeru Ishiba reacts as he speaks to reporters after a Japanese negotiator held ministerial talks at the White House regarding US tariffs, at the prime minister’s official residence in Tokyo, Japan, 17 April 2025. FRANCK ROBICHON/Pool via REUTERS
Japanese Prime Minister Shigeru Ishiba reacts as he speaks to reporters after a Japanese negotiator held ministerial talks at the White House regarding US tariffs, at the prime minister’s official residence in Tokyo, Japan, 17 April 2025. FRANCK ROBICHON/Pool via REUTERS
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Trump Bails 'Big Progress' in Japan Tariff Talks

Japanese Prime Minister Shigeru Ishiba reacts as he speaks to reporters after a Japanese negotiator held ministerial talks at the White House regarding US tariffs, at the prime minister’s official residence in Tokyo, Japan, 17 April 2025. FRANCK ROBICHON/Pool via REUTERS
Japanese Prime Minister Shigeru Ishiba reacts as he speaks to reporters after a Japanese negotiator held ministerial talks at the White House regarding US tariffs, at the prime minister’s official residence in Tokyo, Japan, 17 April 2025. FRANCK ROBICHON/Pool via REUTERS

President Donald Trump touted "big progress" in tariff talks with Japan on Wednesday, in one of the first rounds of face-to-face negotiations since his barrage of duties on global imports roiled markets and stoked recession fears.

Japan had not expected the president to get involved in Wednesday's talks, viewing them as a preliminary, fact-finding mission, a sign that Trump wants to keep tight control over negotiations with dozens of countries expected over coming days and weeks, Reuters said.

Tokyo had also been hoping to limit the scope of the talks to trade and investment matters. But announcing his involvement early Wednesday, Trump said thorny issues including the amount Japan pays towards hosting US troops were among discussion topics.

"A Great Honor to have just met with the Japanese Delegation on Trade. Big Progress!" Trump said in a social media message that contained no details of the discussions.

Opposite Trump was Ryosei Akazawa, a close confidant of Japanese Prime Minister Shigeru Ishiba who serves in the relatively junior cabinet position of economic revitalization minister.

Speaking to reporters after the talks, Akazawa gave few details but said the parties had agreed to hold a second meeting later this month and that Trump had said getting a deal with Japan was a "top priority".

Exchange rates, which the Trump administration has said Japan and others manipulate to get a trade advantage, were not part of the talks, Akazawa added.

The dollar strengthened against the yen after his remarks on forex, up around 0.5% on the day. Tokyo denies it manipulates its yen currency lower to get make its exports cheaper.

Akazawa held a 50-minute meeting with Trump at the White House before another session with his Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer that stretched to almost an hour and a half, according to Japanese readouts of the talks.

Japan's prime minister, who has previously said he won't rush to reach a deal and does not plan to make big concessions, sounded a more cautious tone speaking to reporters later in Tokyo.

"Of course, the negotiations will not be easy going forward, but President Trump has stated that he wants to give top priority to the talks with Japan," Ishiba said.

Italian Prime Minister Giorgia Meloni heads to the White House on Thursday to discuss tariffs imposed on the European Union with Trump, while Bessent has invited South Korea's finance minister to Washington for talks next week.

FIRST MOVER ADVANTAGE

Trump has long complained about the US trade deficit with Japan and other countries, saying US businesses have been "ripped off" by trade practices and intentional efforts by other countries to maintain weak currencies.

Japan has been hit with 24% levies on its exports to the United States although these rates have, like most of Trump's tariffs, been paused for 90 days. But a 10% universal rate remains in place as does a 25% duty for cars, a mainstay of Japan's export-reliant economy.

Bessent has said there is a "first mover advantage" given Washington has said more than 75 countries have requested talks since Trump announced sweeping duties on dozens of countries - both friend and foe - earlier this month.

Akazawa declined to comment on the matter, adding only that he strongly requested a revocation of the tariffs and that he believed Washington wanted to secure a deal in the 90-day window.

Washington is hoping to strike deals with countries that would cover tariffs, non-tariff barriers and exchange rates, Bessent has said, though Tokyo had lobbied to keep the latter separate.

Trump earlier this month lambasted Japan for what he said was a 700% tariff on rice, a figure Tokyo disputes. Levies on autos are particularly painful for Japan as they make up nearly a third of shipments to the US, its biggest export market.

Japan hopes that pledges to expand investment in the United States will help to convince the US that the allies can achieve a "win-win" situation without tariffs.

Possible Japanese investment in a multi-billion dollar gas project in Alaska could also feature in tariff negotiations, Bessent said before Wednesday's talks.

"It sounds like the Trump administration really does want a quick deal, which suggests it will be a less substantive deal," said Tobias Harris of Japan Foresight, a political risk advisory.

"My baseline is that if the US really starts making demands on agriculture and maybe also on some of the auto regulations, it becomes a lot more contentious and hard to do quickly."