Wednesday, 23 December 2009

Iraq’s Oil Output Quota May Become OPEC’s ‘Hot Iron’

Iraq’s plan to boost oil output with the help of foreign companies may upset the Organization of Petroleum Exporting Countries’ efforts to support prices because the nation has no quota to limit its production.

Oil companies including Royal Dutch Shell Plc, BP Plc and OAO Lukoil may help Iraq meet a target to boost oil output capacity to 12 million barrels a day in the next six years after winning oil licensing rounds earlier this year.

Oil has gained 64 percent since the beginning of 2009, when OPEC output cuts agreed late last year took effect, and is currently at about $73 a barrel. The group left production targets unchanged today at a meeting in Luanda, Angola.

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