18 Jun 2014
Plenty of room for oil upside
According to Independent Analyst Malcolm Graham-Wood there is still plenty of room for upside as the latest IEA report casts doubts on Iraq’s chances to increase production with or without the current problems, after Islamist-led militants took control of the country's biggest oil refinery.
Key quotes
"All the companies operating there are still reporting that operations are ‘unaffected’ by the activities in the country although I am hearing that they are all making contingency plans to withdraw workers as one might expect. I have been hearing news that a major refinery has been shut down with the loss of 300/- b/d of product which will have to be imported."
"It’s a good time I suppose to be having the big conference in London at which key speakers have included Dr Ashti Hawrani the KRG Oil Minister. Yesterday he told the conference that the KRG were exporting 125/-b/d through the pipeline to Turkey as well as two tankers that have left Ceyhan headed for international markets with two more loading at present. He expects exports to reach 200/- to 250/-b/d during July and 400/-b/d day by the year end."
"Last night the API inventory stats flummoxed the scribblers as they reported a draw of 5.7m barrels of crude against forecasts of 650/- barrels, WTI had been down and started to motor which is has continued this morning, overturning the widening differential to Brent. My traders tell me that Brent itself had a small rally towards the close but on insignificant volumes."
Key quotes
"All the companies operating there are still reporting that operations are ‘unaffected’ by the activities in the country although I am hearing that they are all making contingency plans to withdraw workers as one might expect. I have been hearing news that a major refinery has been shut down with the loss of 300/- b/d of product which will have to be imported."
"It’s a good time I suppose to be having the big conference in London at which key speakers have included Dr Ashti Hawrani the KRG Oil Minister. Yesterday he told the conference that the KRG were exporting 125/-b/d through the pipeline to Turkey as well as two tankers that have left Ceyhan headed for international markets with two more loading at present. He expects exports to reach 200/- to 250/-b/d during July and 400/-b/d day by the year end."
"Last night the API inventory stats flummoxed the scribblers as they reported a draw of 5.7m barrels of crude against forecasts of 650/- barrels, WTI had been down and started to motor which is has continued this morning, overturning the widening differential to Brent. My traders tell me that Brent itself had a small rally towards the close but on insignificant volumes."