Wednesday, February 1, 2012

Iraq Is The Achilles Heel In Oil Production And Prices


Forget Iran, Iraq Is Threatening Oil Prices -- CNN

NEW YORK (CNNMoney) -- The deteriorating situation in Iraq is leading some analysts to worry that the country may not be able to meet its lofty goals for rapidly ramping up oil production.

Violence in Iraq is a big problem, especially for the people who live there.

But it's an issue for oil markets because increased oil output from Iraq is supposed to offset rising demand from places like India and China. Iraq's ability to deliver on that oil is one reason oil prices haven't jumped even higher than they are now.

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My Comment: It is a surprise that oil prices have not climbed to the $150 /barrel levels that we saw a few years ago. Nigeria oil production is down because of sectarian strife. Libya's oil production will take a few years to recover from it's civil war. Venezuela's policy of oil nationalization has scared away the majors. Central Asian oil production will take a few years to come online, and Iran is threatening to shut the taps if tougher sanctions are enforced. Yup .... Iraq oil is needed .... and needed soon.

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