Kurdistan Region could cash in on oil production struggles elsewhere: analyst
ERBIL, Kurdistan Region – The Kurdistan Region and wider Middle East could stand to benefit from a global oil price collapse exacerbated by the COVID-19 pandemic, according to a Britain-based economic analyst.
Speaking to Rudaw TV via video call on Thursday, analyst Nasser Kalawoun said that if a decrease in energy consumption is induced by a second wave of COVID-19 and oil prices remain at around $35 per barrel, “there will be a deep cut quickly, and this is a problem for producers” in the UK.
“There is at least a third of the production in the North Sea that, if the price [of a barrel of oil] stays around $35, cannot be commercially produced from the UK," Kalawoun continued. "So, this can benefit Iraq and Kurdistan, perhaps for 100,000 barrels [per day]...it can favour Middle Eastern producers."
Brent crude oil prices currently sit at around $36 per barrel, while the OPEC crude oil price is around $28.
Continued spread of the virus and suspension of most flights mean oil prices are unlikely to climb significantly in the forseeable future - but value could creep up to $40 a barrel, Kalawoun said.
Speaking to Rudaw TV via video call on Thursday, analyst Nasser Kalawoun said that if a decrease in energy consumption is induced by a second wave of COVID-19 and oil prices remain at around $35 per barrel, “there will be a deep cut quickly, and this is a problem for producers” in the UK.
“There is at least a third of the production in the North Sea that, if the price [of a barrel of oil] stays around $35, cannot be commercially produced from the UK," Kalawoun continued. "So, this can benefit Iraq and Kurdistan, perhaps for 100,000 barrels [per day]...it can favour Middle Eastern producers."
Brent crude oil prices currently sit at around $36 per barrel, while the OPEC crude oil price is around $28.
Continued spread of the virus and suspension of most flights mean oil prices are unlikely to climb significantly in the forseeable future - but value could creep up to $40 a barrel, Kalawoun said.