It seems that things are really starting to go decently in Iraq since they are now bidding out 6 of their oil fields to foreign companies. I have a feeling that a US firm will not win outright (they might win 1 or 2 for appearance sake) since the US would be accused of trying to "steal Iraq's oil wealth" or other nonsense. However I would bet on TotalFinaElf (TOT) winning a big chunk since the Iraqis turned to the French in the 70s to help them with their oil industry. This development should change the supply/demand picture going forward.
All the oil fields on the list are producing oil, Shahristani said, noting that the new contracts would raise the country's oil production by 1.5 million barrels per day.
Iraq's current daily oil production is around 2.5 million barrels.
So here we should have 1.5 million barrels of oil that will have added to total world supply by 2009 (bids are due by next March and contracts will be handed out in June) and this should push prices lower. It probably won't burst the oil bubble since good news about Iraq usually isn't very popular with the main stream media.
In any case we have lowered demand, everyone jawboning the market downward, and the potential for increased supply (Iraq and Brazil) going forward. I still think we will have $100 or less (Maybe even $80?) oil by this time next year.
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