Iran strains its try for attracting foreign investments and Iraq¢s exports rise, while Nigeria has problems.

Iran strains its try for attracting foreign investments and Iraq¢s exports rise, while Nigeria has problems.
Iran strains its try for attracting foreign investments and Iraq¢s exports rise, while Nigeria has problems.
Tuesday July 26, 2016

Iran this week ignored judges who reckon its return has peaked by declaring that it is in negotiations with Japan’s Mitsui Chemicals and France’s Total SA to lure 60 billion US dollars in foreign investment.

A government official claimed that also are negotiating with German, Italian, and Spanish firms for investments. Investments of this magnitude are a crucial part of Iran’s target to be the biggest petrochemical producer in the Middle East. The money is needed to expand and update its aging wells, which were old and already performing below standards prior to the lifting of the economic sanctions.

Also the National Petrochemical Company (NPC), plans to finalize 55 projects (some of which had stopped due to the sanctions era) and starts 28 new production facilities in order to rise its annual output capacity to 150 million metric tons this year, thus paving for more foreign investment.

If this activity results in one or more countries doing business with the Islamic Republic, it would prove wrong the prediction of critics such as since many US sanctions are still active and companies will be very careful about making new commitments to Iran; no one wants to go into a conflict with the US sanction Law.

Not to be outdone, Iraq’s oil exports in the first 21 days of July have averaged 3.28 million barrels per day (bpd), according to loading data, which is higher than 3.18 million bpd in June, although a pipeline leak put temporarily out of order two southern terminals and interrupted the loadings.

Even though Iraq’s 2016 increase is anticipated to be slower than the 500,000 bpd boost in production it succeeded last year, a source stated that loading delays and other factors given the country a motivation to try and catch up.

Meanwhile, it seems Nigeria, which of late had tackled its production problems and decreased its export declines far more effectively and will not be following Iran or Iraq on the comeback trail anytime soon.

An official from Nigerian government stated that the administration is negotiating with the rebels through oil companies and security agencies to end the militant attacks that have reduced daily production by 800,000 barrels.

Nigeria’s woes notwithstanding, Iran and Iraq’s aggressive stance will likely mean more product on an oversaturated market that has resulted in Brent and west Texas Intermediary Losing ground throughout the week. An analyst claimed that the market is technically weak, stocks are still high for summer, maintenance season is not far off, and there are floating barrels at sea top it all.

 


Also in the News
Bunker price spreads in 2020
Bunker price spreads in 2020

Market Predictions - Global Pricing & Premiums

LNG Bunkering has not found its route in the Market yet.
LNG Bunkering has not found its route in the Market yet.

Time passes quickly when looking into LNG bunkering. Two years ago, the market talked about it as a possible solution to the introduction of a 0.1% sulfur emission control area, or ECA, for ships in northern Europe. Five years before that it was the start of the 1% sulfur ECA in the same area that might have helped promote the idea.

Oil is steady as investors regain confidence.
Oil is steady as investors regain confidence.

Crude oil futures were stable to higher during the mid-afternoon trade in Asia Tuesday, as investors held their confidence in a more balanced oil market, with supporting data from producer-countries showing a reduction in supply.

Oil Culminates as market is stand by for OPEC Supply Numbers
Oil Culminates as market is stand by for OPEC Supply Numbers

Crude oil futures were marginally higher in the mid-afternoon trade in Asia Friday, as now market participants are awaiting data from the International Energy Agency and OPEC to support the growing positive sentiment around compliance of the deal.


map

newsheaderspecs
isosheader iso iso
termsheader terms terms

cert_logos
Copyright 2007-2019 FT Maritime Services Limited.
All rights reserved. Use of this website signifies your agreement to the Terms of Use and Online Privacy Policy.