BAKU, Azerbaijan, Jan. 16
By Leman Zeynalova – Trend:
Iraq’s oil output boost may be hindered by heightened security concerns, Trend reports with reference to the International Energy Agency (IEA).
Referring to the tension observed in the Middle East with killing of Iranian general and Iranian attack on US air base in Iraq, IEA said in its Oil Market Report that recent events showed Iraq’s vulnerability as a supplier.
“In the medium term heightened security concerns might make it more difficult for Iraq to build production capacity. In turn, this could make it more difficult to ensure there is sufficient spare production capacity to meet rising global demand in the second half of this decade,” said the report.
IEA said that in recent years production and export capacity have expanded fast: in 2010 Iraq exported 2 mb/d and now the figure is 4 mb/d.
“Iraq’s rising capacity has been very welcome as sanctions have reduced Iran’s exports to only 0.3 mb/d and Venezuela’s production has collapsed. Today, both China and India receive about 1 mb/d of oil from Iraq and another 1 mb/d moves to various European countries. In India’s case, around 20 percent of its crude imports come from Iraq. Amongst Iraq’s other customers is the US. Data from the Energy Information Administration show that in January-October 2019 the US imported 337 kb/d from Iraq, and just below 1 mb/d from the Middle East Gulf as a whole,” reads the report.
---
Follow the author on Twitter:@Lyaman_Zeyn