Platts maps of Iraq’s oil fields
Platts maps of Iraq’s oil fields

FACTBOX: Iraqi crisis continues to spook oil sector
London (Platts)–17Jun2014/1016 am EDT/1416 GMT

Militants pushed a week-long offensive that has overrun swathes of Iraq to within 60 km of Baghdad Tuesday, as the UN warned the country’s very existence was under threat. The crisis continues to impact on the oil sector.

PRICES/SUPPLY
* Oil prices remain at close to nine-month highs despite dropping back slightly Tuesday
* Thamer Ghadban, former Iraqi oil minister and now a senior adviser to Prime Minister Nouri al-Maliki, said the country’s southern oil fields were under the full control of the government. He also said there was no threat to
southern oil exports
* BP CEO Bob Dudley also said the insurgency was unlikely to spread to the south of the country and was not affecting production in that area, home to the majority of its oil output
* The International Energy Agency is monitoring the escalating sectarian violence and “stands ready” to respond to any disruption in oil supplies from the country by releasing emergency oil stocks, the IEA’s executive director Maria van der Hoeven said
* The IEA now sees Iraqi production capacity increasing to 4.54 million b/d by 2019, a reduction of 470,000 b/d from the agency’s medium-term forecast from last year and well below the roughly 8.5-9 million b/d Baghdad envisages
by 2020
* A further two tankers will load Kurdish crude from Ceyhan in Turkey this week, the Kurdistan Regional Government’s top oil official said Tuesday, which would bring the total number of Kurdish cargoes to be exported from the port to four

COMPANIES
* Russia’s Gazprom Neft, the oil arm of gas giant Gazprom, has not felt any impact from the offensive at its recently launched Badra oil project in the east of the country
* The Iraqi oil ministry announced in a statement that the bidding round for the Nassiriya oil field and refinery, scheduled to take place June 19, has been postponed
* Japan Petroleum Exploration Co. evacuated its staff from the Gharraf oil field in southern Iraq as a result of mounting security concerns in the country

POLITICS
* Militants attacked and took control of parts of the central Iraq city of Baquba but security forces eventually repelled the assault. Militants control most of Tal Afar and the surrounding area, however
* The Islamist onslaught raises the specter of a sectarian conflict spilling across the embattled nation’s borders, UN chief Ban Ki-moon warned
* Washington deployed extra troops to protect its embassy in Baghdad and was mulling air strikes against militants
* New clashes erupted in eastern Syria between rebels seeking President Bashar al-Assad’s ouster and the ISIS jihadist group

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