Iraq’s exports and production ‘not affected by halting Nassiriya oilfield’

Iraqi laborers work at an oil refinery in the southern town Nassiriya. Production operations at the oil field were stopped after protesters closed roads leading toward the site. (AFP/File)
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Updated 30 December 2019

Iraq’s exports and production ‘not affected by halting Nassiriya oilfield’

  • The country to use additional output from oilfields in Basra to make up for the missing shipments: Oil Ministry

BASRA: Halting production from Iraq’s southern Nassiriya oilfield on Saturday by protesters will not affect the country’s exports and production operations, the Oil Ministry said on Sunday. Iraq will use additional output from southern oilfields in Basra to make up for the missing shipments from Nassiriya field and the closure of field’s operations are temporary, the ministry said in a statement.
A senior manager at the state-run Basra Oil Co. said they can increase production from Majnoon southern and other small oilfields operated by the state-run company.
No foreign companies operate at the Nassiriya oilfield and state-run teams are managing the operations.
Production operations at Nassiriya, which produces 80,000-85,000 barrels of oil per day (bpd), were stopped after protesters closed roads and prevented workers from reaching the field, said the ministry statement.

BACKGROUND

• Oil production operations at Nassiriya, which produces 80,000-85,000 bpd, were stopped after protesters closed roads and prevented workers from reaching the field.

• A senior official at the state-run Basra Oil Co. says they can increase production from Majnoon southern and other small oilfields operated by the state-run company.

Protesters broke into Iraq’s southern Nassiriya oilfield on Saturday and forced employees to cut off electricity from its control station, taking the field offline.
Iraq is one of the world’s top oil producers. Earlier this month, Iraqi oil minister said that OPEC and allied oil producers will consider deepening their existing oil output cuts by about 400,000 bpd to 1.6 million bpd.
The minister, Thamer Ghadhban, told reporters in Baghdad that the Organization of the Petroleum Exporting Countries and its allies, together known as OPEC+, will consider increasing the cuts in their supply pact at meetings in Vienna this week.
OPEC+ oil exporters have coordinated output for three years to balance the market and support prices. Their current deal, which agreed to cut supply by 1.2 million bpd from January this year, expires at the end of March.

 


IMF: Low rates and reduced trade tension to aid world growth

Updated 4 min 38 sec ago

IMF: Low rates and reduced trade tension to aid world growth

  • International economy is receiving significant boost — 0.5 percentage point of growth last year and this year
  • But IMF warns global economy continues to face array of risks

WASHINGTON: Low interest rates and reduced trade tensions will likely buoy the global economy over the next two years and help nurture steady if modest growth.
That’s the view of the International Monetary Fund, which foresees world economic growth accelerating from 2.9% last year to 3.3% in 2020 and 3.4% in 2021. The international economy is receiving a significant boost — 0.5 percentage point of growth last year and this year — from central banks’ low-rate policies, the lending organization says in a global outlook report out Monday. The US Federal Reserve, for instance, cut rates three times last year and expects to keep rates low for the foreseeable future.
And an interim trade deal signed last week by the United States and China — the world’s two biggest economies — is expected to add 0.2 percentage point to global growth this year by lowering tariffs and improving business confidence. The global economy is rebounding from some temporary stumbles, including a lull in the launch of new technology products and new emissions standards that disrupted car production.

Still, the IMF warns that the global economy continues to face an array of risks, including the possibility that trade tensions will escalate again. And many countries aren’t benefiting from the modest upswing in growth.
Presenting the report at a news conference in Davos, Switzerland, IMF chief Kristalina Georgieva said that after a slowdown in 2019 there should be “a moderate pickup in global growth this year and next.”
“We already see some tentative signs of stabilization,” she said. “But we have not reached a turning point yet.”
Even in the United States, the IMF foresees growth slowing from 2.3% in 2019 to 2% this year and 1.7% in 2021, partly because the boost that the economy received from President Donald Trump’s 2017 tax cuts has been fading.

China’s economy will also continue to decelerate, the IMF predicts — from 6.1% last year to 6% in 2020 and 5.8% next year. Though China’s economy will likely benefit from the truce with the United States, Beijing continues to manage a difficult transition away from speedy economic growth based on often-wasteful and debt-fueled investments to slower but steadier growth built on spending by the country’s growing middle class.
Likewise, Japan’s economic growth, hobbled by an aging workforce, is expected to decelerate from 1% last year to 0.7% this year to 0.5% next year.
Collective growth in the 19 countries that use the euro currency is expected to gradually pick up: 1.2% in 2019, 1.3% in 2020 and 1.4% in 2021.
The IMF’s global forecast is slightly bleaker than the previous one it issued in October, mainly because of an expected sharp slowdown in India: The world’s seventh-biggest economy is expected to grow 5.8% this year, down from the 7% the IMF had expected in October, and 6.5% in 2021, down from a previously forecast 7.4%. In addition, problems in the financial sector have reduced credit, crimping consumer spending in India.