The oil situation seems quite supportive right here, otherwise I would have held off taking some positions on Friday. Demand should be quite strong for gasoline and until demand exits #2 oil for NG, #2 oil as well. One more speed bump in oil supply and the fireworks start.
Iraq Can't Commit to Long - Term Oil Deals
By REUTERS
Filed at 8:54 p.m. ET
BAGHDAD (Reuters) - Iraq is still in no position to discuss term oil contracts with customers because of lingering doubts over exports from oilfields, a senior Iraqi oil marketing official said Sunday.
``We don't want to discuss term contracts with customers because we don't want to make any promises and then realize the availability of supplies is not enough,'' the official told Reuters.
``Right now we are not certain what the country can produce. We would like to pursue term contracts but we are not in a position to discuss them.''
Oil revenues are crucial to Iraq's drive to rebuild and attract investment after years of war, crippling sanctions and economic mismanagement under Saddam Hussein, who was toppled on April 9 by a U.S.-led invasion.
The official, who asked to remain anonymous, said northern oil pipelines were still gripped by what he called political sabotage attacks so any exports from fields would have to come from the south, which he added were hit by economic sabotage.
``We are still not sure if the south can provide sustained supplies because there are problems there too. But if exports start they will come from the south,'' he said.
Iraq's vital export pipeline to Turkey in the north was hit by another sabotage blast a week ago while it was still undergoing repairs from previous attacks, raising further questions about Iraq's export troubles.
Iraq, which sits on the world's second largest oil reserves, made its first post-war oil sales using crude oil from storage. But its oil officials are working toward resuming exports from Iraqi oilfields for the long term.
Iraq awarded its second post-war crude oil tender to at least four companies last week, including a U.S. oil major and a trading house.
International oil firms want to know how soon Iraq can revive its exports from fields and return to market with sustained supplies to customers.
``It is still too early to tell when we will be able to provide steady supplies. We are waiting for the ministry to give us figures. Right now there is no way of knowing,'' said the oil official.
Iraq wanted to avoid a third post-war sell tender but would not rule it out if exports were still held back by sabotage and looting unleashed in the aftermath of war, he said.
``We don't want another tender. But if we have to we will. Right now we are waiting until the end of the month to try and get a clear picture of how much we can produce and export,'' he said.
Iraq was currently producing 800,000 barrels per dayof oil -- way below target -- with 400,000 bpd consumed domestically.
Iraq had planned to resume exports of about a million bpd in mid-July. |
