ASTANA, Kazakhstan, Dec. 22 (UPI) -- Disruptions in oil production in Kazakhstan could have a similar impact as the Libyan war though the prospects for major violence is low, analysts say.
More than a dozen people were killed in riots in western Kazakhstan last week in the worst outbreak of violence since the country gained independence from the Soviet Union.
Kazakhstan in 2010 produced around 1.7 million barrels of oil a day compared with 1.6 million bpd in Libya, statistics from a world energy review from BP show. Disruptions in Libyan crude production from this year's war sent jitters across global energy markets and analysts worry about a similar impact with Kazakhstan.
David Wech, an analyst at JBC Energy in Vienna, told Bloomberg News a complete stoppage in Kazakhstan would be "quite similar" to the effects seen in Libya, with European markets feeling the brunt of the halt.
Other analysts said the riots in Kazakhstan are especially troubling consider the sanctions pressure put on Iran, one of the top producers in the Organization of the Petroleum Exporting Countries.
Kazakhstan's state-run energy company KazMunaiGas said last week its production wasn't curtailed by the rioting because its employees weren't involved. Zhanar Nazkhanova, an equity analyst at the country's Visor Capital, told Bloomberg news the prospects for major violence were low, however.
"This is a tribal issue that is specific to the western part of the country," he said.
Source: United Press International (UPI).
Link: http://www.upi.com/Business_News/Energy-Resources/2011/12/22/Kazakh-riots-create-oil-market-jitters/UPI-89581324562631/.
An Open Letter to Rania Al Abdullah of Jordan
9 years ago
What is happening in Kazakhstan is between the puppet regime of that nation and the people of that nation. More specifically it has to deal with the puppet regime suppressing its people.
ReplyDeleteIt has absolutely nothing to do with "tribal issue" nonsense! I wonder if the analyst really knows what's going on and is being paid to say something else, or if he really is ignorant of the situation.
That said, I'm glad there are Mujahideen there in Kazakhstan.