Page 13 - MEOG Week 42 2021

MEOG NEWS IN BRIEF MEOG

POLICY this time around. OIL
Gorran was formed in 2009 by a group
The fate of Kurdish parties of dominant PUK figures who disapproved Saudi believes OPEC+ can’t
of the party’s policies. The new party,
after Iraq’s election which started off as the first real opposition decrease natural gas prices
movement in the Kurdish political process,
Preliminary results from Iraq’s elections have soon outgrew the PUK in the 2013 Kurdistan Saudi Arabia said any extra oil from the
riled up the country, with several parties Region elections and became part of the OPEC+ cartel would do little to bring down
rejecting them altogether. government. surging natural gas prices.
At the same time, the vote has changed Gorran then re-joined forces with the PUK “We see our role as extremely limited,”
the political reality in Iraq’s autonomous and formed the Kurdistan Coalition to contest Saudi Energy Minister Prince Abdulaziz bin
Kurdistan Region, giving more power to some the 2021 Iraqi elections, hoping to increase Salman said during the CERAWeek India
parties while humiliating others. their influence and gain more votes with a Energy Forum on Wednesday. “The issue is
The election saw a record low turnout, with slogan of “We are stronger together”. But the not the availability of crude oil. Even if we
many boycotting the vote due to scepticism PUK failed to keep all of its 18 seats, while made it available in tons and tons, who’s going
about the system and widespread disapproval Gorran lost all of theirs. to burn it? Who is in need of it? And are they
of the parties who have ruled the country for For many people, Gorran’s disastrous in need of crude or in need, for example, of
years. On average, however, more Kurdish defeat in the 2021 elections was a sign that gas?”
voters showed up to the polls than in other their supporters did not approve of the Gas and coal futures have soared to record
Iraqi provinces. party’s decision to rejoin forces with a party highs in recent weeks amid shortages of the
The official preliminary results from they once split from. It also appeared to be fuels across much of Europe and Asia. Oil has
the Iraqi Independent High Electoral a rejection of Gorran’s involvement in the also risen as some power producers switch to
Commission (IHEC) late on Saturday showed government. crude, but it’s been less volatile, thanks in part
that the Kurdistan Region’s ruling party Following the defeat, the party offered to OPEC+ committing to steady production
maintained a larger vote share in Iraq than it an apology to its followers, claiming increases.
did in the previous 2018 election. responsibility and promising to reform Prince Abdulaziz said oil demand may
The Kurdistan Democratic Party (KDP) itself. Three days after the elections, Gorran’s rise by 500,000-600,000 bpd if the northern
has preliminarily pocketed 33 seats, an governing body announced that all its hemisphere’s winter is colder than normal.
increase from the 25 they earned in the members were to resign and the party’s That’s roughly 0.5% of global consumption.
controversial 2018 elections. The party was leadership would be run by an interim group Any further boost to demand may be
already celebrating victory for six days when until further notice. limited because many gas-fired generators
the official preliminary results came out, with The New Generation party led by cannot switch easily to oil, which is also a far
crowds flooding the streets celebrating with businessman Shaswar Abdulwahid was among dirtier fuel.
fireworks, and, at times, celebratory gunfire. the dark horses of the election. The Organization of Petroleum Exporting
The results came as a shock for other The party surprised everyone when Countries and its allies – a 23-nation group
parties. While the Patriotic Union of they emerged from the elections with nine led by Saudi Arabia and Russia – have pledged
Kurdistan (PUK) continued to enjoy influence seats, winning seats in the PUK and KDP to raise daily output by 400,000 barrels each
by winning 16 seats, only two less than stronghold cities of Kirkuk and Erbil. month. Some major consumers, including the
the previous election, their partner in the New Generation has served as an active U.S. and Japan, have called on exporters to do
Kurdistan Coalition hit rock bottom. opposition party in the Kurdistan Region and more to lower oil prices, which are up around
Gorran (Change Movement) faced an apparently aims to remain so in Iraq. 65% this year to over $80 a barrel.
electoral humiliation, with the party going NEW ARAB BLOOMBERG
from five seats in the Iraqi parliament to zero

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