Iraq bitumen 60/70
This article tends to talk about the Iraq bitumen 60/70 and the outside
variables that affect the market, demands, and prices. On its 60th anniversary, OPEC was not good news for the global oil market. They met the failure
of the Organization of the Petroleum Exporting Countries to
agree on a common policy with Russia with an immediate reaction.
Iraq bitumen 60/70 and the OPEC Plus
Generally speaking, the members of this oil cartel, in the eighth meeting of
“OPEC Plus,” tried their best to fight the decline in demand under the
shadow of the outbreak of the Coronavirus, but the Russians saw
another horizon in front of their oil market. Not only did OPEC and its allies,
we know as OPEC Plus, failing to regulate the oil market, but the
March 6 meeting turned into an arms embargo by Saudi Arabia. To be more specific, the oil war between Saudi Arabia and Russia is the inverted realization
of the goal of OPEC Plus; an event that could have a far-reaching
effect on the coronavirus outbreak.
Iraq bitumen 60/70
In fact, the corona has so far caused a sharp drop in oil demand;
Oil consumption in China, for example, has fallen by 20 percent. One of the reasons why we can mention this; reducing the consumption of aircraft
gasoline as an oil product. As a matter of fact, the market is also not
short of production and supply following shale oil production in the United States. They held the extraordinary OPEC meeting a day before the OPEC Plus
meeting in the Austrian capital, in the hope of balancing supply and
demand and thus preventing price reductions.
Why did Moscow not fall under the burden of reducing production?
Technically speaking, Saudi Arabia, as one of the most important
members of OPEC, insisted on the need to reduce production. Russia was
the party to such a demand at the OPEC Plus meeting. The fact is that
Russia has refused to reduce its oil production ceiling for at least three reasons. First of all, the embargo on Iranian oil has put Russia in a suitable position
to increase its share of the oil market. Besides, the Russians are a
serious competitor to Iran in both the oil and natural gas markets,
and economic sanctions are an opportunity for the Kremlin.
But , It’s needful to mention that Russia has faced a backlash from the
White House over the transfer of its natural gas to Germany. In other words, the implementation of the Rolling Stream 2 project means “conquering”
the European gas market, and the US stonewalling has prompted Moscow
to go to war over shale oil, or the so-called “energy revolution.” Moscow is unwilling to take a single step away from the market at a time when the
United States has become an exporter of black gold by producing shale oil. Low oil prices have a direct impact on US shale oil production and supply;
In other words, shale oil production is not cheap compared to cheap oil.
Bitumen price 60/70 and the fluctuations
With the overnight price slope unprecedented in the past three decades,
the Russians will not leave the scene unless cheap oil affects the price of natural gas. Additionally, with the increase in supply to Saudi Arabia,
the Russian oil company also seeks to increase its production by 300,000
barrels from April 1. On this account, Russia, which wanted to maintain its production ceiling, began to increase production. Riyadh, on the other hand,
has taken the opposite direction in response to Russia’s policy. The Moscow-Riyadh dispute over oil price change has turned into a confrontation
over greater market share.
Iraq bitumen 60/70 and Saudi Arabia
Also , To be more specific, the Saudis are pursuing two policies of reducing
and increasing production for next month’s contracts. Aramco will try to
keep its Asian market out of the hands of the Russians with a $7 discount
per barrel and an increase in production of 2 million barrels per day.
Also , Saudi Arabia, which accounts for about two-thirds of its exports to Asia, has welcomed
several refineries since the start of the price war. In such a market,
it is not far-fetched to think that other major manufacturers will follow a
similar path. If the oil of the United Arab Emirates, Kuwait, and Iraq is
at a discount along with the oil of Saudi Arabia and the outbreak of
the Coronavirus lasts, oil prices will continue to decline. In such a
scenario, you have to wait for $20 oil.
It’s also good to mention that the Moscow-Riyadh market dispute and,
ultimately, cheap oil, whatever the impact, the biggest losers will be the
American oil companies that have invested in shale oil production. On the other hand, stopping the downward trend in oil prices requires an end to the
market battle between Riyadh and Moscow, a reduction in production in
North America, and the conclusion of a global fight against the spread of the Coronavirus.
Iraq bitumen 60/70 and the recent actions
According to Bloomberg News, Iraq, OPEC’s second-largest producer
boosted its oil exports by 4.4 percent in the first two weeks of February to
3.440 million barrels per day. It pledged to reduce its oil production in
order to compensate for the breach of its production quota in an
agreement to reduce production by the Organization of the Petroleum
Exporting Countries (OPEC) and its allies (the OPEC plus Coalition).
As you might know, Crude oil exports are an accurate measure of a country’s
oil production, but if Iraq keeps its oil exports at 3.440 million barrels per
day, that figure would exceed the production ceiling
announced by Baghdad, taking into account its domestic consumption.