Iraqi oil minister asks BP to develop Kirkuk oilfields

Kirkuk is estimated to have around 9 billion barrels of recoverable oil remaining, according to BP. (Reuters)
Updated 18 October 2017
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Iraqi oil minister asks BP to develop Kirkuk oilfields

BAGHDDAD: Iraqi Oil Minister Jabar Al-Luaibi has asked BP “to quickly make plans to develop the Kirkuk oifields,” an oil ministry statement said on Wednesday.
Iraqi government forces on Monday took control of the oil-rich region of Kirkuk from Kurdish Peshmerga fighters who had occupied the area in 2014, in the course of the war on Daesh.
BP says on its website it has provided technical assistance in the past to the Iraqi state-owned North Oil Company to aid the redevelopment of the Kirkuk field.
Kirkuk is estimated to have around 9 billion barrels of recoverable oil remaining, according to BP.


Stronger US dollar unlikely to derail bullish view on commodities — Goldman Sachs

Updated 34 min 17 sec ago
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Stronger US dollar unlikely to derail bullish view on commodities — Goldman Sachs

  • The dollar has been lifted by a stronger-than-expected US economy, the world’s largest
  • A stronger greenback makes the purchase of dollar-denominated international commodities more expensive for holders of other currencies

BENGALURU: Goldman Sachs said a stronger dollar is unlikely to derail its bullish view on commodities, which are likely to find support from physical shortages.
The dollar has been lifted by a stronger-than-expected US economy, the world’s largest, and that’s a positive sign for global growth, the US investment bank said.
The US dollar index has lost more than 1 percent this week, but this follows months of strong demand over US-China trade-related tensions, as investors bet the greenback would gain at the expense of riskier currencies.
“The risk aversion this summer created significant emerging market destocking, particularly in China, as consumers attempted to avoid a strong dollar and tariffs by liquidating inventories,” Goldman said in a note dated on Thursday.
A stronger greenback makes the purchase of dollar-denominated international commodities more expensive for holders of other currencies, making buyers and users more likely to draw on any stored materials in preference to imports.
“This liquidation, however, has a physical limit with Chinese destocking having already created significant increases in physical (premiums) for oil and metals – a sign of physical shortages.”
Going forward, oil had a strong fundamental outlook helped by US demand growth, supply losses and disruptions, and still constrained US shale output, Goldman said.
The bank said its near-term Brent crude oil price target remained at $80 a barrel.
The bank said it was moderating its bullish view for gold due to a sell-off in emerging markets, and it lowered its 12-month price forecast for the metal to $1,325 per ounce, down from $1,450 an ounce earlier.