News / Middle East

Energy Experts: Iraq-Driven Oil Price Rise Likely Temporary

Energy Experts: Iraq-Drive Oil Price Rise Likely Temporaryi
X
Mil Arcega
June 13, 2014 6:40 PM
World oil prices are at their highest levels of the year as escalating violence in Iraq threatens to disrupt oil exports. Iraq is a major oil-producing nation, and a serious disruption there could have significant impact on energy prices. But, as Mil Arcega reports, energy analysts say there’s no reason to panic - just yet.
World oil prices are at their highest levels of the year as escalating violence in Iraq threatens to disrupt exports.

As a major oil-producing nation, Iraq's political stability is crucial keeping energy prices steady.

But energy analysts say there’s no reason to panic — yet.

As OPEC’s second biggest oil producer, Iraq pumps out more than three million barrels per day, which is why territorial gains this week by an al-Qaida splinter group in oil-producing regions are giving energy markets a case of the jitters.

But the threat may be overblown.

Depending on how long the conflict lasts, only a small increase in gasoline and heating oil prices are anticipated, says Andrew Ricci, a public relations account supervisor with Levick Energy, a Washington-based public affairs and energy research firm.

“The real impact that it’ll have on the United States is that it’s going to empower the arguments for advocates of energy independence, energy stability and clean energy sources.”

Oil prices have been relatively stable for the last four years, partly due to lower demand in developed countries and the rise in alternative fuel sources. There’s also the prospect of currently untapped oilfields from Libya to Iran, says Reuters energy columnist John Kemp.
 
''First of all, we saw South Sudan, then Libya, then Nigeria," he said. "Iran's oil has been kept largely off the market by sanctions, and, now, we're seeing mounting problems in Iraq, all of which means that you can see lots of oil in the future. But in the near term, the market remains fairly balanced."

But much will depend on whether insurgents are able to gain a permanent foothold in Iraq.

Although the threat of instability has helped push oil futures to highs not seen since last September, the threat of further disruptions may be limited.

Energy analysts say Iraq’s most productive oil fields — some 80-90 percent of total capacity — lie further to the south, in areas unsympathetic to the Sunni-led militants.

You May Like

IS Militants Release 49 Turkish Hostages

Turkey's state-run Anadolu news agency reports that no ransom was paid and no conditions accepted for the hostages' release; few details of the release are known More

Photogallery IS Attacks Send Thousands of Syrian Kurds Fleeing to Turkey

Syrian Observatory for Human Rights says more than 300 Kurdish fighters crossed into Syria from Turkey to defend a Kurdish area from attack by the Islamic militants More

Video Sierra Leone's Ebola Lockdown Continues

Thousands of health workers are going door to door in the West African country of 6 million, informing people of how to avoid Ebola, handing out soap More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Fears Ebola Outbreak ‘Beyond Our Capability to Contain’i
X
Jeff Seldin
September 20, 2014 10:28 PM
Each day brings with it new warnings about the deadly Ebola outbreak already blamed for killing more than 2,600 people across West Africa. And while countries and international organizations like the United Nations are starting to come through on promises of help for those most affected, the unprecedented speed with which the virus has spread is raising questions about the international response. VOA's Jeff Seldin has more from Washington.
Video

Video Fears Ebola Outbreak ‘Beyond Our Capability to Contain’

Each day brings with it new warnings about the deadly Ebola outbreak already blamed for killing more than 2,600 people across West Africa. And while countries and international organizations like the United Nations are starting to come through on promises of help for those most affected, the unprecedented speed with which the virus has spread is raising questions about the international response. VOA's Jeff Seldin has more from Washington.
Video

Video Iran, World Powers Seek Progress in Nuclear Talks

Iran and the five permanent members of the U.N. Security Council plus Germany, known as the P5 + 1, have started a new round of talks on Iran's nuclear program. VOA State Department correspondent Pam Dockins reports that as the negotiations take place in New York, a U.S. envoy is questioning Iran's commitment to peaceful nuclear activity.
Video

Video Obama Goes to UN With Islamic State, Ebola on Agenda

President Obama goes to the United Nations General Assembly to rally nations to support a coalition against Islamic State militants in Iraq and Syria. He also will look for nations to back his plan to fight the Ebola virus in West Africa. As VOA White House correspondent Luis Ramirez reports, Obama’s efforts reflect new moves by the U.S. administration to take a leading role in addressing world crises.
Video

Video Migrants Caught in No-Man's Land Called Calais

The deaths of hundreds of migrants in the Mediterranean this week has only recast the spotlight on the perils of reaching Europe. And for those forunate enough to reach a place like Calais, France, only find that their problems aren't over. Lisa Bryant has the story.
Video

Video Westgate Siege Anniversary Brings Back Painful Memories

One year after it happened, the survivors of the terror attack on Nairobi's Westgate Shopping Mall still cannot shake the images of that tragic incident. For VOA, Mohammed Yusuf tells the story of victims still waiting for the answer to the question 'how could this happen?'
Video

Video Militant Assault in Syria Displaces Thousands of Kurds

A major assault by Islamic State militants on Kurds in Syria has sent a wave of new refugees to the Turkish border, where they were stopped by Turkish border security. Turkey is already hosting about 700,000 Syrian refugees who fled the civil war between the government and the opposition. But the government in Ankara has a history of strained relations with Turkey's Kurdish minority. Zlatica Hoke reports Turkey is asking for international help.
Video

Video Whaling Summit Votes to Uphold Ban on Japan Whale Hunt

The International Whaling Commission, meeting in Slovenia, has voted to uphold a court ruling banning Japan from hunting whales in the Antarctic Ocean. Conservationists hailed the ruling as a victory, but Tokyo says it will submit revised plans for a whale hunt in 2015. Henry Ridgwell reports from London.
Video

Video A Dinosaur Fit for Land and Water

Residents and tourists in Washington D.C. can now examine a life-size replica of an unusual dinosaur that lived almost a hundred million years ago in northern Africa. Scientists say studying the behemoth named Spinosaurus helps them better understand how some prehistoric animals adapted to life on land and in water. The Spinosaurus replica is on display at the National Geographic museum. VOA’s George Putic has more.
Video

Video Iraqi Kurdistan Church Helps Christian Children Cope find shelter in churches in the Kurdish capital, Irbil

In the past six weeks, tens of thousands of Iraqi Christians have been forced to flee their homes by Islamic State militants and find shelter in churches in the Kurdish capital, Irbil. Despite U.S. airstrikes in the region, the prospect of people returning home is still very low and concerns are starting to grow over the impact this is having on the displaced youth. Sebastian Meyer reports from Irbil on how one church is coping.


Carnage and mayhem are part of daily life in northern Nigeria, the result of a terror campaign by the Islamist group Boko Haram. Fears are growing that Nigeria’s government may not know how to counter it, and may be making things worse. More

AppleAndroid