London Brent crude hovered near $ 111 a barrel yesterday in light of the continued reluctance of investors worried with the growing economic concerns while prices derived support from hopes that stimulates the new Japanese government’s policies demand for crude.
Western sanctions remain in place against Iran overshadow oil markets. The data showed the Japanese Ministry of Finance that the imports of Iranian crude oil, which crossed the customs fell 18.8% on an annual basis in November, as shrinking Western sanctions shipments from Tehran.
Brent crude dropped in the nearest contract monthly benefit of 16 cents to $ 110.91 a barrel, erasing gains the previous session, which amounted to 2%. Brent may face some resistance between 112 and 113 dollars before falling towards 102.7 dollars during the next three months, said Wang Tao, an analyst Market Technical commodities and energy. The light sweet crude down from the highest level in nine weeks hit in the previous session and lost six cents to $ 90.92 a barrel.
According to data of the Ministry of Oil Japanese, Japan’s third-largest oil consumer in the world imported 261 thousand and 273 barrels per day of Iranian crude last month, compared with 321 thousand and 609 barrels per day a year ago. It is scheduled to be published and the Japanese trade ministry data separately for imports of crude on Friday.
They are following up more of the oil industry as monitor the actual situation for oil tankers. And oil importers can request permission Customs within three months of the arrival of the shipment or request classification the shipment as imports of storage and keep them for up to two years before getting a customs clearance which means that the Ministry of Finance data may be inaccurate.
According to data from the Ministry of Finance of imports that crossed customs, Japan imported 192 thousand and 276 barrels per day in the first 11 months of 2012, down 38.7% from 313 thousand and 817 barrels per day in the same period a year ago. The Yasushi Kimura, president of the Association of Japanese oil and Chairman J.. X Nippon Oil and Energy said that Japan’s imports of Iranian oil may drop 15% next year.
Where will reach a maximum of about 160 thousand barrels per day has been reduced by more. And Japan’s imports fell from Iranian oil to zero in July for the first time since 1981, according to Commerce Department data after European sanctions have prevented insurance companies from providing services to tankers carrying oil from Iran.
And the United States renewed in September Iran Sanctions exceptions of Japan and ten European countries after those countries cut their purchases of crude member state of the Organization of Petroleum Exporting Countries. And resulted in severe penalties from Washington and Europe aimed at getting Iran to curtail its nuclear program to the decline of Iran’s oil exports by more than half this year cost the country more than five billion dollars a month.
To make matters worse material did not go unnoticed by many in the U.S. sanctions new that will apply on the sixth of February stipulates that the funds used to pay for oil must remain in a bank account in the country where you buy can not be used only for the purposes of bilateral trade which is not covered sanctions between this country and Iran.
Lukoil reduced production in Iraq, 30%
Reduced Lukoil is the second largest crude oil producer in Russia the level of oil production target in Iraq by about a third in keeping with the local government plans to extend the life of its oil fields. And said Andre Kozyaev head the company’s foreign operations that Lukoil is now looking for peak production from the West Qurna-2 of 1.2 million barrels a day instead of the standard 1.8 million barrels per day, which was targeted before.
West Qurna-2 is the second largest untapped field in the world and estimated recoverable reserves of about 14 billion barrels, according to Lukoil. The Kozyaev said the Iraqi government has decided to reduce the maximum oil production to boost prices and support the economy. He added: This is why the Iraqi leadership has decided to reduce the maximum production in the country as a whole to nine million barrels a day, not 12 million.
He said: Iraqis analyzed the situation in the past three years and concluded that they do not need to sharp increases in the height of production, because the peak of production would result in the establishment of infrastructure redundant. When production starts to fall off dramatically in the future will lead to instability of macroeconomic situation in Iraq.
Iraq has signed several contracts with foreign companies targeting a total production capacity of 12 million barrels per day by 2017.
Any significant reduction in the total target level could mean the need to amend the agreements in line with lower production levels which means a decline in return on oil companies in the short term. Iraq targets production of 3.7 million barrels per day on average in 2013, slightly lower than the highest level ever of 3.8 million barrels a day and scored 1979. It is expected that exports 2.9 million barrels per day, of which 250 thousand barrels per day contribute to the Kurdistan Regional Government in the north of the country.
Lukoil controls 75 percent of the West Qurna-2 giant Iraqi and looking for a partner to replace Statoil decided to withdraw from the project earlier this year but declined to nominate any other partner. It is expected that the field produces 500 thousand barrels per day in 2014. Lukoil plans to invest five billion dollars in the development of the field next year.