Iraq crisis threatens the stability of oil prices

Date: 09:17, 17-06-2014.

Almaty. June 17. KazTAG - The crisis in Iraq will be a challenge for the world oil market with unpredictable effects on prices, according to ITAR-TASS.
"Map of the Middle East can be rewritten. The oil market is facing new challenges. There was a time when we thought that the price of oil at $ 20 a barrel will be lasting for a long time. Where are those $20?"- said the founder of the Cambridge  IHS CERA Center Daniel Yergin at the plenary session of World Petroleum Congress.
According to him, the current situation in Iraq is much more important for the dynamics of the oil market than sanctions against Russia.
"Question sanctions are important, but the world there are many other events. Now everything goes into the shadows on the background of the crisis in Iraq. Will Iraq stay as a state? The growth of oil supply from Iraq earlier stabilize the world market, and now this factor is not obvious. "- Said the expert.
At the same time, the executive director of British Petroleum (BP) Robert Dudley hopes that the conflict in Iraq will not affect on oil production capacities in the South.
"This is a terrible event, but the main production facilities are located far away from the conflict point, except Kirkuk. I do not believe that these events will affect the industry. But we are very worried about the situation in Iraq, "- said Dudley.
He also told reporters that some of BP employees left Iraq, but the operating activities of the company in the country continues.

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