Tag: control of oil

North Africa

Paralysis at Libya oil ports jacks up global price

Oil prices rose above $75 a barrel for the first time since November 2014, as Libya's National Oil Corporation declared force majeure at its principal oil ports, which continue to be battled over by rival armed factions. Prices for West Texas Intermediate crude rose to $75.27 a barrel before dropping back down to $72.73. After years of depressed global oil prices, analysts are again talking of a possible new "oil shock." Growing tensions between the US and Iran, and other factors, were also cited. Libya's Union of Oil and Gas Workers meanwhile issued a statement saying that the country's oil is the collective property of all Libyans, and should be removed from all political, regional and tribal disputes. (Photo: Libya Observer)

Africa

South Sudan: will ‘permanent’ ceasefire hold?

South Sudanese President Salva Kiir and his bitter rival and former vice president Riek Machar, now leader of the SPLM-IO rebels, met in the Sudanese capital Khartoum to sign a "permanent" ceasefire agreement, pledging to form an inclusive transitional government. The parties agreed to open humanitarian corridors, release detainees, withdraw troops and militarily disengage. The transitional government is to form a national army and security forces not linked to tribalism. However, the challenges for the 36-month transition period are great. Millions in South Sudan are on the brink of famine, and more than 2.5 million have fled the country. Hundreds of thousands more—mostly members of minority ethnic groups—are internally displaced, with many sheltering in camps administered by the United Nations. Previous efforts at a negotiated peace have broken down. (Photo: Sudan Tribune)

North Africa

‘Disaster’ seen as Libyan oil facility burns

Libya's National Oil Corporation is warning of an "environmental disaster" following clashes at the country's Ras Lanuf oil terminal that set storage tanks on fire. “Further damage to these oil sites could have a huge impact on the Libyan oil sector and the national economy.," the statement said. The Petroleum Facilities Guard launched an operation in Libya's "oil crescent" last week to take the Ras Lanuf and Sidra terminals from the Operation Dignity militia alliance, which they termed a “a terrorist entity.” Operation Dignity and the affiliated "Libyan National Army," led by commander Khalifa Haftar, are loyal to Libya's unrecognized eastern government. (Photo: Libya Observer)

The Andes

‘Gasolinazo’ protests rock Peru

Hundreds marched on Peru's Congress building, in a rally that ended in clashes with the riot police in Lima's central Plaza San Martín, and a police car set on fire. The "Shut Down Congress" (Cierren el Congreso) mobilization was called to protest both economic austerity and official corruption, and came amid new revelations of vote-buying. It was the second such march since May 31, which saw a similar mobilization in downtown Lima. The press has dubbed the protest wave the "gasolinazo," as the high price of petrol (despite depressed global oil prices) is a key grievance. (Photo: @dbedoya08 via Debate)

Syria

Assad turns oil over to Putin for military protection

Bashar Assad arrived in Russia to publicly thank Vladimir Putin for his military support in the ongoing re-conquest of Syria—prominently including the deployment of new missile systems. Undoubtedly discussed behind closed doors was the  new “energy cooperation framework agreement” between Moscow and Damascus, under which Russia is to have exclusive rights to exploit oil and gas in Syria. (Photo of Vityaz missile launcher via Wikipedia)

Iran

New oil shock feared in wake of Iran debacle

After all the talk we've heard in recent years about how depressed oil prices are now permanent, in the wake of Trump's announced withdrawal from the Iran nuclear deal Bank of America is predicting that the price of Brent crude could go as high as the once-dreaded $100 per barrel in 2019. The report also cited collapsing production in Venezuela due to the crisis there. Brent prices have risen above $77 per barrel since Trump's announcement. Prices have jumped more than 8% over the past month and 15% since the beginning of the year. According to the analysis, investors fear that renewed sanctions on Iran could lead to supply disruptions. Although the report failed to mention it, the Israeli air-strikes on Iranian targets in Syria have doubtless contributed to the jitters.  (Photo: Shana)

The Andes

Oil contracts at issue in Peru political scandal

Seemingly irregular oil contracts have emerged as a factor in the ongoing political scandal that last week brought down Peru's president Pedro Pablo Kuczynski. Following accusations from left-opposition congressmembers, state agency PeruPetro admitted that hours before leaving office, Kuczynski had issued a Supreme Decree initiating the process of approving five offshore oil concessions with a private company—but without the involvement of PeruPetro in vetting the contracts, as required by law. Calling the deals "lobista," Dammert is demanding that new President Martín Vizcarra declare the contracts void. (Photo: Gestión)

North Africa

Environmental protester shuts Libyan oil-field

The company operating Libya's biggest oilfield, Sharara, announced that it had been shut down after a citizen closed the pipeline that pumps the field's oil. The field is run by a joint venture between Libya's National Oil Corporation and several multinationals. The individual claimed the pipeline caused environmental damage to his lands, and had also closed the pipeline last year to press his demands for a clean-up. With this latest closure, Libya's oil output dropped to a six-month low of 750,000 barrels per day. National Oil Corporation chairman Mustafa Sanallah described those who shut down oil-fields as "terrorists." (Photo: Libya Observer)

Syria

Russian Cossacks fight in Syria?

Mystery continues to surround the US air-strikes on Syria’s Deir ez-Zor governorate, which Damascus called a “brutal massacre” of pro-regime troops. While the Kremlin denies that its troops were involved in the incident, survivors are said to be receiving medical treatment at Defense Ministry hospitals in Moscow and St. Petersburg. And the Kaliningrad-based Baltic Cossack paramilitary group issued a statement claiming its members were among those who “died for the Fatherland, the Cossacks and the Orthodox faith” in Deir ez-Zor. One of the slain was named by the group as a veteran of the war in Ukraine. (Image: Voices from Russia)

Africa

Harsh repression as bread riots rock Sudan

Sudanese authorities carried out mass arrests and confiscated newspapers as protests exploded over rising bread prices and severe economic austerity. One student was killed amid demonstrations in Geneina, capital of West Darfur state. Protests were also reported from the cities of Nyala, al-Damazin and the capital Khartoum. The unrest broke out as bakeries doubled the price of bread following a government decision to increase the price of flour nearly fourfold. The decision was part of a package of austerity measures issued under the country's 2018 budget, seeking to address the spiralling inflation rate.

Planet Watch

Arctic oil scramble in offing after GOP tax bill

As a part of the Republican tax overhaul bill, Congress voted  to open Alaska's Arctic National Wildlife Refuge (ANWR) to oil and natural gas drilling, after more than four decades of contestation on the matter. Drilling is still years away at best, due to depressed oil prices, a lengthy review process, and likely legal challenges. But oil companies are already arguing over who will have rights to the reserve—while Native Alaskan communities that depend on its critical caribou habitat see impending cultural extermination. (Photo: FWS)

Planet Watch

Oil prices surge: vindication is tedious

We've been told for the past several years now that the depressed oil prices were permanent, thanks to fracking and the surge in US domestic production. Now prices are rising again, due to a convergence of crises in major producers: escalating tensions among the Gulf states, labor unrest in Nigeria, deepening instability in Venezuela. The US was able to contain the price spike after the ISIS irruption in 2014 by boosting its own production. This trick isn't going to work forever.