Oil Markets on Edge as Trouble Brews From Nigeria to Iran

Several major oil-producing regions are generating anxiety in global energy markets, with supply disruptions real or threatened across the Middle East, Africa, and Latin America.

Iran, the second-largest crude producer in OPEC behind Saudi Arabia, exports roughly 2.7 million barrels per day (mbpd). Traders fear those flows could be interrupted if Western nations impose penalties over Tehran's nuclear activities, which the US and its allies suspect are weapons-related.

In Iraq, ongoing violence and attacks on infrastructure have kept output near 1.5 mbpd, far below pre-invasion levels. Nigeria, Africa's top oil producer at 2.6 mbpd under normal conditions, has lost more than 20 percent of its capacity to militant sabotage in the Niger Delta. Chad announced it would suspend its 250,000-barrel-per-day output by late April after the World Bank froze its funds over concerns the government had bypassed rules requiring oil revenues to fund social programs.

Latin America adds further uncertainty. Venezuela, OPEC's sole regional member, is requiring foreign energy companies to accept joint ventures giving Caracas majority control, while President Hugo Chavez has raised taxes on firms including France's Total and Chevron. Bolivia and Ecuador have pursued comparable steps, and Peru may follow.

Historical summary. TurkishPress restated this wire report, first published in April 2006, in its own words.