Politics, Geopolitics & Conflict

Baghdad is assembling a westward export system capable of carrying southern Iraqi crude to the Mediterranean through Syria or Turkey. Iraq has brought Chevron, U.S. investment firm Capital TI, and Qatar’s UCC into technical and financial studies for two oil export pipelines built around a common Basra-Haditha trunk. One route would continue through Kirkuk to Turkey’s Mediterranean port of Ceyhan; the other would cross Syria to Baniyas. KBR is conducting a separate study of the Basra-Haditha section, where construction began in May on a pipeline designed to carry 2.5 million barrels per day. This week, Washington endorsed the restoration of the Kirkuk-Baniyas line, which has been largely inoperative since 2003, and Chevron is preparing agreements covering the West Qurna 2 and Nassiriya oilfields alongside its work on export routes outside Hormuz. Iraq has also begun shipping limited crude and naphtha volumes through Syrian ports and intends to keep doing so even after Hormuz stabilizes (if it stabilizes).

A drone struck a vessel near Iraq’s Basra Oil Terminal on Thursday, the second drone incident involving Basra province’s port infrastructure in two days. Iraq’s Oil Ministry said crude loading continued normally and that exports from southern terminals had not been disrupted. No damage has been reported to the tanker or port facilities. Basra handles more than 3 million bpd of crude exports.

Venezuela’s June 24 earthquakes…