Iraq approved a plan for its semi-autonomous Kurdish region to transfer oil to Baghdad, a step toward resuming exports that have been halted for more than two years.  The Kurdistan Regional Government will supply Iraq’s state oil marketer SOMO with 230,000 barrels a day as part of a deal for Baghdad to release funds for salaries in the northern region, people familiar with the matter said. The transfer of the crude is a crucial element for an agreement between the federal and semi-autonomous administrations to restart exports through a pipeline to Turkey’s Mediterranean coast. There have been numerous attempts to resume oil shipments since the pipeline was halted in March 2023 following a payments dispute. International companies operating in the Kurdish region have said exports can only kick off when contracts are in place and they have clarity on compensation, including future payments and past dues. Earlier this week, the firms reiterated their demand, while saying talks in the government to restart exports “have intensified.” Any restart of exports would also depend on how quickly companies are able to bring online fields that were shut this week following a barrage of drone attacks. About 200,000 barrels a day of output has been halted, according to an official in the Kurdistan Regional Government.     The latest steps come just as the Organization of the Petroleum Exporting Countries and its allies have started boosting production quotas, giving some members the room to raise exports. Additional shipments would likely add to a supply surplus forecast for later this year.   Iraq, however, has been keen to increase production in the long-term and boost oil revenue after years of war and internal strife. The halted Kurdistan exports have resulted in about $25 billion in lost revenue, Kurdistan Regional Government Prime Minister Masrour Barzani said last month.

Oil rose amid signs of tighter supplies in the near term and on stronger demand signals in the US. West Texas Intermediate crude rose 1.7% to settle above $67 a barrel, snapping a three-day losing streak. Equity markets advanced — typically a bullish indicator for commodities — after better-than-expected US economic data allayed some fears of oil demand deterioration. Prices also found support from indications of a tighter near-term physical crude market on Thursday. US crude inventories slid last week and Iraq has lost about 200,000 barrels a day of oil production due to drone attacks on several fields in Kurdistan. Chevron Corp. said it was on the cusp of reaching a production plateau in the largest US oil field. “While inventories globally have built very significantly, stocks in the pricing centres – especially in the US – are still quite low,” Daan Struyven, head of oil research at Goldman Sachs, said on Bloomberg Television. Market focus has shifted to “downside risks to supply,” he said. Limiting the rally, Iraq approved a plan for its semi-autonomous Kurdish region to resume oil exports that have been halted since March 2023. The Kurdistan Regional Government will supply Iraq’s state oil marketer SOMO at least 230,000 barrels a day for export, the federal government said. Supply concerns were also reflected in the forward curve for crude. It is currently trading in backwardation, where a premium is paid for sooner delivery over longer-dated contracts. In the US, distillate stockpiles remain at the lowest seasonal level since 1996 even after last week’s increase. Oil Prices WTI for August delivery gained 1.7% to settle at $67.54 a barrel in New York. Brent for September settlement climbed 1.5% to $69.52 a barrel. What do you think? We’d love to hear from you, join the conversation on the

Petrobras is considering a return to retail fuel sales after President Luiz Inacio Lula da Silva and the state-controlled oil company’s top executive complained about high pump prices. Four years after exiting the business now known as Vibra Energia SA, Petrobras’ board of directors will meet this week to discuss amending the company’s strategic plan to include a presence in the retail sector, according to a person familiar with the matter who asked not to be named discussing private matters.  It’s unclear if such a move would involve trying to fully re-nationalize Vibra or buying a stake in the convenience-store operator and distributor of cooking fuels and other petroleum products. The proposal to be discussed for the 2026-2030 strategic plan would position Petrobras as a diversified and integrated energy company, the person said. Vibra was privatized during the Jair Bolsonaro administration. Petrobras’ media-relations office declined to comment. Lula has complained that wholesale price cuts by Petrobras for gasoline, diesel and other products haven’t flowed through to consumers at the retail level. He has blamed both filling stations and state-level taxes for the disparities. “It’s not possible for Petrobras to announce such a huge discount on diesel and for this discount not to reach the consumer,” Lula said earlier this month while announcing refinery investments. “Even when Petrobras cuts back, many gas stations don’t.” Lula has also said privatization has created multiple layers in the distribution system that result in higher prices for consumers.  “Petrobras currently releases a 13-kilogram gas cylinder for 37 reais and it gets at a poor person’s house for 140 reais,” Lula said at the early July event. State control of retail outlets would allow more efficient delivery of the fuel, he added. Petrobras Chief Executive Officer Magda Chambriard has also expressed concern that filling stations aren’t

Activity is slowing in US oil fields as drillers remain in the crude-price danger zone for profits, according to one of the biggest investors of private operators in the shale patch. “In the mid-$60s, you get dangerously close to where oil prices don’t really drive appropriate returns for new drilling,” Dwight Scott, who joined Quantum Capital Group at the start of this month as executive vice chairman, said on Bloomberg TV Wednesday. “So, activity in the oil field is slowing; I think that’s a temporary thing.” West Texas Intermediate, the US benchmark, has fallen 8% since the start of this year, trading at $65.82 a barrel on Wednesday. Scott, who helped build Blackstone Inc.’s credit arm into a $330 billion business, said while uncertainty around tariffs has contributed to reduced drilling activity, he expects the US “will continue to be a leader in oil and gas.” WHAT DO YOU THINK? Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

The White House on Wednesday named David LaCerte, an official in the U.S. Office of Personnel Management, to fill a vacant seat at the Federal Energy Regulatory Commission. LaCerte has served as the principal White House liaison and senior advisor to the director of the OPM since January, according to his LinkedIn page. He worked at OPM during the first Trump administration. The office is the chief human resources agency and personnel policy manager for the federal government. When he joined the OPM, LaCerte was set to help craft policy on workforce relations, collective bargaining and employee accountability, according to his former law firm in New Orleans, Sternberg, Naccari & White. LaCerte contributed to Project 2025, a presidential transition effort organized by the conservative Heritage Foundation that includes The Mandate for Leadership, a road map to “deconstruct the Administrative State.” LaCerte also worked as acting managing director at the U.S. Chemical Safety and Hazard Investigation Board starting at the end of President Donald Trump’s first term. LaCerte was a special counsel at the Baker Botts law firm for two years, starting in January 2023. While there, he worked on energy litigation and environmental, safety and incident response issues. FERC regulates natural gas infrastructure, wholesale electricity and gas markets, hydroelectric projects and interstate electric transmission. If confirmed by the Senate, LaCerte would serve for the remainder of former FERC Chairman Willie Phillips’ term, which expires June 30, 2026, according to the White House. LaCerte will likely move through the Senate confirmation process with Laura Swett, an energy attorney at Vinson & Elkins who Trump nominated for a FERC seat on June 2. Swett would assume the seat held by FERC Chairman Mark Christie. It is unclear how quickly the Senate will be able to act on the nominations. If confirmed, FERC

Dive Brief: Utilities are set to accelerate the development of their renewable energy projects in order to qualify for Inflation Reduction Act tax credits within the new one-year safe harbor period set by the Republican megabill that passed earlier this month, according to a July 10 report from investment bank Jefferies.  Jefferies anticipates utilities “with renewables-heavy plans” – like Xcel Energy, WEC Energy Group, CMS Energy, and Ameren – “to accelerate projects originally slated for 2030–31 into 2027–28 … While affordability concerns linger, we believe investors are too focused on potential capital pullbacks and not enough on who’s actually accelerating spend.” “The provisions of the new law provide a sufficient path for us to continue delivering new, affordable, clean energy to our customers through the end of the decade,” said Theo Keith, a senior media relations representative at Xcel Energy. “Our well-established planning process ensures we can manage policy changes while working to meet our states’ energy goals and keeping bills as low as possible for our customers.” Dive Insight: “Meeting the unprecedented demand for energy in the U.S. to support our growing economy will require a wide range of energy sources and strengthened infrastructure,” Keith said. “While we supported a longer-term phase-down of the wind and solar tax credits, we recognize that budgets require compromise … we remain focused on an ‘all-of-the-above’ approach for the energy we provide.” The Republican budget megabill, which President Donald Trump signed into law July 4, stipulates that wind and solar projects must start construction within a year of the law’s enactment to qualify for the IRA’s clean electricity production and investment tax credits, or be subjected to an end of 2027 “placed in service” deadline to be eligible. As part of a reported deal with the Freedom Caucus, Trump also issued an executive order