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 Iraq resorts to dumping in battle for oil market: some varieties sold at $30, - Reuters

Iraq has set the official selling price of Basra Heavy in Europe at $10.40 a barrel for December, that is much below Brent's price.

As reported by Censor.NET citing Reuters, trade sources say cargoes are being sold a dollar or more below officially set price - or less than $30.

In Europe, Iraq has overtaken Saudi Arabia as the second-largest seller after Russia, and Iran has already lined up buyers to purchase its crude when sanctions are lifted, the International Energy Agency says.

"For this reason, producers are likely to grow still more competitive on pricing," the IEA said. The scale of Iraq's growth this year surprised many observers. Moreover, the extent of any slowdown in 2016 and Iran's growth are on the minds of OPEC delegates heading into the group's Dec. 4 meeting on output policy.

"The Iraqis need to tell OPEC their plan for next year and the Iranians so far haven't told anyone how much they really can pump," an OPEC delegate said. "Production from these two countries is important for OPEC to make a decision."

Read more: Saudi Arabia outperformed Russia in oil production

No production growth is expected next year in Iraq. "At the moment we are looking at stable levels at Majnoon," said Shell's integrated gas director, Maarten Wetselaar. Other executives working in southern Iraq also see flat production next year, and some warn of a dip by the second half of 2017 due to lack of investment.

"It is difficult to see a massive ramp-up in production next year," said BP's head for the Middle East, Michael Townshend. This year, the company cut its development budget for the Rumaila oilfield by $1 billion to $2.5 billion.

Iraq plans to export 3.0-3.2 million barrels per day from the south in 2016, an Iraqi oil source told Reuters. He declined to forecast exports from Iraq's north, which restarted in late 2014 and have grown to about 600,000 barrels per day.

Northern deposits are located in the Kurdistan region, its government blaming the government of Iraq for violation of obligations on payments from the state budget and selling oil independently.

Read more: Ukraine comes up with alternative to Russian oil supplies, Energy Minister Demchyshyn says
Источник: https://en.censor.net.ua/n361489
 
 
 
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