6.5 C
New York
Saturday, February 27, 2021

The IEA warns that Iraq’s oil supply is “vulnerable”

Must Read

Global balance of the coronavirus pandemic on February 27 at 11:00 GMT

The new coronavirus pandemic has caused at least 2,518,080 deaths in the world since the WHO office in China...

A large almost intact ceremonial chariot discovered in Pompeii

A large four-wheeled ceremonial float, with iron elements, bronze and tin decorations, remains of mineralized wood, and traces of...

Five things to keep in mind at the 2021 Golden Globes

There won't be a red carpet or a star-studded audience, but a lot is still at stake at Hollywood's...

The International Energy Association (IEA) has warned that the oil supply is “vulnerable” to the tensions and conflicts that have rebounded in the Middle East in recent months, as evidenced by its monthly report on the crude oil market, published this Thursday.

“The recent tension in the Middle East has once again added another layer of uncertainty to the forecasts of the oil market,” explained the Paris-based agency. “We cannot know how the geopolitical situation will develop, but for now it seems that the risk of a major threat to the oil supply has receded,” the IEA has clarified.

Specifically, the document notes that the increase in the production of non-OPEC countries and the ‘stock’ of OECD crude, which is nine million barrels above the average of the last five years, provides a ‘solid base to react in the event of a new escalation of geopolitical tensions.

Iraq’s oil vulnerability occurs in a context in which the Arab country has gained strategic importance as a producer. In the last decade, Baghdad has doubled its oil exports, reaching four million barrels per day. The IEA partially attributes this growth to the effect of US sanctions on Iran’s exports, which have fallen to 300,000 barrels per day, and to the “collapse” of production in Venezuela.

“In the medium term, the increase in security problems could make it difficult for Iraq to further develop its production capacity. Instead, it could make it increasingly difficult to ensure that there is additional production capacity to meet the growing global demand in the second half of this decade,” said the IEA.

For the whole of 2020, the association forecasts that the demand for crude oil will rise by 1.2 million barrels per day, thanks to the fact that prices “remain partially weak”, as well as the greater growth of world GDP and the “progress” in solve commercial disputes. During this year, the production of countries outside the Organization of Petroleum Exporting Countries (OPEC) will grow by 2.1 million barrels per day.

- Advertisement -
- Advertisement -

Latest News

Global balance of the coronavirus pandemic on February 27 at 11:00 GMT

The new coronavirus pandemic has caused at least 2,518,080 deaths in the world since the WHO office in China...
- Advertisement -

More Articles Like This

- Advertisement -