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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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    Oil failure in the first month of the “additional voluntary reduction”.. Iraq saves itself by “reneg

    Rocky
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    Oil failure in the first month of the “additional voluntary reduction”.. Iraq saves itself by “reneg Empty Oil failure in the first month of the “additional voluntary reduction”.. Iraq saves itself by “reneg

    Post by Rocky Fri Feb 02, 2024 5:08 pm

    [size=35][size=35]Oil failure in the first month of the “additional voluntary reduction”.. Iraq saves itself by “reneging on its word”[/size]
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    Economy

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    02-02-2024 | 01:06
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    Alsumaria News - Economy

    Iraq is still far from fulfilling its commitments or its “word” that it made to OPEC regarding production, as the numbers show that the “voluntary double reduction” that Iraq announced late last year and said that it would adhere to starting from the first to the third month of the new year 2024 is basically an application of the first voluntary reduction, not an additional one.


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    According to the first voluntary reduction, Iraq’s oil production share is 4.22 million barrels per day, but last December Iraq produced 4.35 million barrels per day, that is, 130 thousand barrels per day more than its share according to the voluntary reduction.



    When Iraq announced an additional voluntary reduction of 220 thousand barrels per day, the total voluntary reduction became 440 thousand barrels per day, which sparked concern that Iraq’s production would be only 4 million barrels per day, a number that is not sufficient for the required export of 3.5 million barrels per day, as well as for the need Consumption and refining in internal refineries, which are approximately 700-800 thousand barrels per day.


    But in reality, the first month of the current year, which is the first month of the voluntary production reduction specified by the Ministry of Oil, showed that Iraq’s production decreased by only 130 thousand barrels per day, meaning that Iraq’s production in January 2024 became 4.2 million barrels per day, that is, 200 million more. One thousand barrels per day above the agreed-upon ceiling that Iraq announced late last year, according to Bloomberg data.

    This means that Iraq has now achieved only the first voluntary reduction goal, and it is unlikely that it will achieve the second voluntary reduction goal of an additional 220 thousand barrels per day.

    Perhaps it is impossible for Iraq to commit to or achieve the additional reduction it announced, as the production of 4 million barrels of oil per day is not sufficient for Iraq and Kurdistan at the same time, even with the expectation of exporting oil through the port of Ceyhan.

    The reason behind this is that Iraq needs to export 3.5 million barrels of oil per day to achieve the revenues required in the budget, and it needs approximately 800 thousand barrels per day of oil to filter it in internal refineries, whether in the Kurdistan region or the rest of the Iraqi refineries, in addition to operating some power stations due to gas. The fuel harvested from Iran requires Iraq to use liquid fuel to operate some stations.

    If Iraq actually commits to reducing an additional 220,000 barrels per day, it will have two options. The first is to lose more than 6% of its oil exports and thus reduce its financial revenues.

    Or losing about 28% of the production of petroleum derivatives, and thus having to import these quantities and compensate for the shortage, that is, by importing an additional 12 million liters of gasoline and kerosene per day.

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