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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Dennis Roth who wrote (184626)	7/2/2014 8:22:05 AM
From: Dennis Roth	2 Recommendations Recommended By evestor LoneClone Read Replies (1) \| Respond to of 206151

Energy Weekly: Legal/Regulatory Boosts To US and Kurdish Oil Export Hopes 30 June 2014 ¦ 13 pages ir.citi.com Immediate Threat To Iraqi Flows Recedes Though Turmoil Continues. PSM Shows Strong Demand and Production Growth The US Department of Commerce clarification last week that stabilized condensate could be exported as a refined product effectively expands the definition of distillation, and may have opened the door to a flood of exports for similarly processed crudes, or to legal challenge if those exports are denied. This is because Commerce’s clarification was focused on how the crude/condensate was processed rather than any technical specification of the crude/condensate itself, such as setting a minimum API gravity. Hence if some other crude stream were given some minimal processing, it may be viable for exports in line with last week’s clarification (see US Condensate Exports/Equity View). Last week also saw a June 24th ruling by the Federal Supreme Court of Iraq in which the court refused to issue a ban on independent oil exports by the Kurdish Regional Government (KRG) in Iraq. As is the case with the US Department of Commerce’s ruling, the case is far from clear cut yet may have far- reaching implications. Iraq’s federal oil ministry had asked the country’s Supreme Court to rule on the constitutionality of the Kurdish region’s oil contracts and its independent oil exports back in 2012, yet the KRG have never shown up to make their legal case, leaving the court unable to rule either way. Given this legal ambiguity, the KRG started loading crude piped to Ceyhan in Turkey in May, and has to date loaded four cargoes and sold one. Crude that has been trucked to Turkey has so far remained uninhibited by legal challenge from Baghdad. The Supreme Court on June 24th ruled, on procedural grounds, that it cannot ban KRG exports as it has not as yet determined them to be illegal. The Iraqi oil ministry is continuing to litigate in other jurisdictions, and threats of legal action by Baghdad have scared off most buyers of KRG crude so far. The rulings by both the US Department of Commerce and the Iraqi Supreme Court leave uncertainty and bearish possibilities in their wake.