Thursday, December 6, 2018

Is Iraq About To Leave OPEC?



CNBC: Iraq could be the next to break ranks with OPEC, analyst says

* A top energy analyst believes that Iraq could be the next country to quit OPEC.
* On Monday, Qatar announced it was quitting the cartel.
* Iraq reportedly pumped a record 4.76 million barrels per day (bpd) in October.

Compliance across OPEC is in question amid conflicting interests regarding oil production cuts and an abrupt withdrawal announcement from Qatar.

While the tiny Gulf kingdom’s departure is largely symbolic and unlikely to lead to further exits, a top energy analyst believes that if any country were to break ranks next, it would be Iraq.

“I think in terms of all the OPEC countries, to me the one that stands out over the last six to eight months is Iraq,” Michael Cohen, head of energy markets research at Barclays bank, told CNBC’s “Squawk Box Europe” on Tuesday.

Read more ....

Update: Could Iraq Be The Next OPEC Member To Exit? (OilPrice.com)

WNU Editor: OPEC is meeting today to discuss oil production cuts, but there are deep divisions .... Oil prices sink as Saudi official signals no pact yet at key OPEC gathering (MarketWatch). As for Iraq leaving OPEC .... they, Saudi Arabia, Russia, and US shale operators are the reasons why OPEC is facing an oil glut. And while everyone is talking production cuts, Iraq is talking the opposite .... OPEC must achieve crude price stability - Iraq minister (Reuters). I can see the possibility in future that if these oil production trends continue to increase, Iraq will be told to cut back, and I have doubts that they will comply.

3 comments:

Anonymous said...

The article states it is Russia, SA and USA causing the oil glut. No. It is the USA causing it all by itself. The USA produces more oil and gas than any country on earth and it guarantees Saudi Arabia’s existence. Together they set global oil and gas policy. That policy says overproduce while Iran is kicked out of the global oil and gas business.

Mike Feldhake said...

Totally agree, we broke the cartel!

Mike Feldhake said...

The next question is; what next for these oil based economies? Some had seen the future and tried to build other industries but some I fear may not do well at all, Iraq being one of those thus they will become failed states. Boy, the future looks interesting.