Dana Gas produces hydrocarbons from Egypt to Iraq and sells condensate, a light oil.
Advertisement
Under the scenario, the Iraqi government would be shipping about 150,000 barrels per day of oil through Iran that is being produced from the fields in Kirkuk.
Iraq is willing to play an active role within OPEC to support oil prices but will not sacrifice its goal of expanding market share and will continue to ramp up output, its oil minister said on Saturday.
The OPEC will hold informal talks during an industry conference in Algiers in September, fanning speculation the group could revive an initiative with non-members such as Russian Federation to limit output. Many past efforts to restrict production have failed and OPEC is responsible for only around 40 per cent of world output.
Brent crude futures were trading at $49.22 per barrel at 0644 GMT, down 70 cents, or 1.4 percent, from their previous close.
Oil prices continued to fall on Tuesday as the United States dollar gained strength and an Iranian official reportedly said his country planned to boost output. “Iran will expand production as much as it can”.
“Most of the OPEC countries are sending a signal that they re open to freezing production, but you have to remember that majority are producing at peak levels”, BMI Research oil and gas analyst Peter Lee told AFP.
“The key to a successful freeze agreement will once again likely be Iran”, Barclays Plc analysts including Miswin Mahesh and Kevin Norrish wrote in a note dated August 28.
Despite this, Barclays said that it saw “incoming oil market data (both demand and supply) as a source for price strength in Q4”.
“They’re just putting more oil onto the market”. Iran should be let to recoup its share of global sales, he said.
“There’s ongoing faith that the oil market globally is rebalancing”, Evans said.
“Either way, despite some increases in Saudi Arabia and Iraq, Opec production seems to be flattening with the outages in Libya, Nigeria and Venezuela, knocking out some 3-million barrels of daily production and no one is holding their breath they’ll return soon”, said Nunan.
U.S. crude stockpiles increased by 942,000 barrels last week, the industry-funded American Petroleum Institute was said to report.
“I don t believe that an intervention of significance is required”.
Advertisement
Analysts say even though prices are still in the doldrums compared with the above-$100 level seen in mid 2014, the steady uptrend seen in the past few months could give Saudi Arabia more justification to leave prices alone, dousing any possibility of a production freeze.
