KRG oil field shut in after pipeline outage
Forza Petroleum was shutting in production from oil fields in the Hawler license area in the semi-autonomous Kurdistan region of northern Iraq, after pipeline exports of Iraqi Kurdish oil to the Turkish Mediterranean port of Ceyhan were halted over the weekend.
Canadian-based Forza is the first foreign operator to announce a halt in production in the areas controlled by the Kurdistan Regional Government (KRG). Ceyhan-bound deliveries via pipeline were halted after the International Chamber of Commerce (ICC) in Paris had ruled in favor of Iraq in a case that pitted Baghdad against Ankara. Iraq has challenged Turkey's authorization for KRG to export crude through the Kirkuk-Ceyhan pipeline without Baghdad's consent.
Foreign oil firms operating in the Kurdistan region have been diverting their crude output into storage tanks following the pipeline shut-in.
"With Hawler storage nearing full capacity, production from the Hawler license area is being shut in pending the resumption of deliveries from the license area," Forza said today.
Another operator of KRG-based oil fields, HKN Energy, said today that its storage facilities were approaching capacity and that it would shut down production within a week unless the Kirkuk-Ceyhan pipeline resumes operations.
"We have urged the governments of Turkey and Iraq to resume the flow of oil through the Iraq Turkey pipeline," the US State Department said today. "Disruptions to global energy supply would not serve anyone's interest."
Crude exports from northern Iraq, Kirkuk blend, averaged 452,000 b/d last year, according to Argus tracking data. More than 380,000 b/d of this was marketed by the KRG. Iraq's federal oil marketing firm Somo accounted for the rest, all of which all went to Turkish refiner Tupras.
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US Fed signals rates likely to stay high for longer
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Houston, 1 May (Argus) — Federal Reserve policymakers signaled they are likely to hold rates higher for longer until they are confident inflation is slowing "sustainably" towards the 2pc target. The Federal Open Market Committee (FOMC) held the federal funds target rate unchanged at a 23-year high of 5.25-5.5pc, for the sixth consecutive meeting. This followed 11 rate increases from March 2022 through July 2023 that amounted to the most aggressive hiking campaign in four decades. "We don't think it would be appropriate to dial back our restrictive policy stance until we've gained greater confidence that inflation is moving down sustainably," Fed chair Jerome Powell told a press conference after the meeting. "It appears it'll take longer to reach the point of confidence that rate cuts will be in scope." In a statement the FOMC cited a lack of further progress towards the committee's 2pc inflation objective in recent months as part of the decision to hold the rate steady. Despite this, the FOMC said the risks to achieving its employment and inflation goals "have moved toward better balance over the past year," shifting prior language that said the goals "are moving into better balance." The decision to keep rates steady was widely expected. CME's FedWatch tool, which tracks fed funds futures trading, had assigned a 99pc probability to the Fed holding rates steady today while giving 58pc odds of rate declines beginning at the 7 November meeting. In March, Fed policymakers had signaled they believed three quarter points cuts were likely this year. Inflation has ticked up lately after falling from four-decade highs in mid-2022. The consumer price index inched back up to an annual 3.5pc in March after reaching a recent low of 3pc in June 2023. The employment cost index edged up in the first quarter to the highest in a year. At the same time, job growth, wages and demand have remained resilient. The Fed also said it would begin slowing the pace of reducing its balance sheet of Treasuries and other notes in June, partly to avoid stress in money markets. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Cenovus boosts oil sands output by 4pc in 1Q
Cenovus boosts oil sands output by 4pc in 1Q
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Tankers can take TMX crude mid-May: Trans Mountain
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