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Iraqi Set to Saturate the Oil Market

Middle East : 12 March 2010

Iraq oil producers are now fuelled by a new found determination to begin to drastically increase their oil output over the next five years. After years of heavy sanctions on Iraq they now have a large supply of untapped Oil resources that they will soon be in a position to unleash onto the global Oil market.

Currently Iraq are not bound to adhere to Opec’s production quota’s and this is causing more than a ripple of concern among some other oil producers in the Middle East. Although it is believed that this upcoming issue will not be a large topic of conversation at the Opec conference on March 17 next many feel that it should be.

Opec officials currently feel that it will take Iraq a number of years to reach an output level that could have any significant effect on the current market. However all are not agreed that this is the case and others feel that Iraq could feasibly boost their output from 1 million bpd to 1.5 million in just two years.

This would lead to a large surplus on the market that Opec will hope to avoid by ensuring Iraq join their ranks. Experts in the market believe this increase in production could upset market prices substantially as Iraq will need to invest very little to access this oil whereas many other major Oil producers are currently looking at much increased overheads as they are now being forced to drill for oil in difficult areas such as at sea and the Arctic region.

Andrew Reid, Staff Writer, Gulf Jobs Market News
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