The windfall will provide fresh capital to some of the world’s largest sovereign wealth funds. United Arab Emirates, Saudi Arabia and Kuwait, the most influential members of the cartel, are home to three of the world’s 10 largest SWFs by assets under management, according to estimates by the SWF Institute.

With one trading day left before the year-end, Brent oil prices are on the point of seeing an average for the year of about $111.5 a barrel, higher than the previous all-time high set in 2011 of $110.9.

The benchmark closed at or above $100 every trading day in 2012, bar 24 in June and early July.

In January, Ali Naimi, the Saudi oil minister, said that the world’s largest oil producer aimed to keep oil prices at the triple-digit level throughout 2012. “If we are able as producers and consumers to average $100 I think the world economy would be in better shape,” Mr Naimi told CNN at the time.

The record run of $100-plus oil prices, coupled with strong production in the first half of the year, lifted Opec’s net oil export revenues to a peak of $1,052bn in nominal terms, up 2.5 per cent from last year, according to the US Energy Information Administration, the statistical arm of the US Department of Energy. A decade ago, Opec countries made just under $200bn selling their oil.

In real terms, adjusted for inflation, Opec’s revenues in 2012 were also the highest ever, surpassing the peaks set during the oil crises of 1973-74 and 1979-81.

The huge revenue windfall has been unevenly distributed among the members of the cartel, which controls roughly 40 per cent of the world’s oil supplies. Iran took a smaller-than-usual share of the pot as US and European sanctions crippled its energy industry, pushing down its oil production to a 32-year low. Between January and November, Iran earned only 6.5 per cent of Opec’s total net revenues, down from a a share of 9-10 per cent during most of the 2000s.

The shortage of Iranian oil helped Saudi Arabia, Iraq, Kuwait and the UAE to pump more, profiting from record annual prices. Also, Libya’s oil earnings recovered in 2012 from the slump triggered by the 2011 civil war.

The huge inflows will shore up the finances of the 12-member group, particularly as some Middle East countries lift social spending on the wake of the Arab Spring.

The International Monetary Fund estimates that Riyadh and Abu Dhabi both need oil prices at about $80 a barrel to balance their budgets. Only a decade ago they were able to balance their budgets with oil prices averaging $25.

Crude and condensate production rose 0.5 percent compared with revised data for October and 1.5 percent from November of last year, according to CDU-TEK preliminary data received today by e-mail.

President Vladimir Putin has called for Russia to maintain production at above 10 million barrels a day for at least the next decade and ordered the government to prepare new tax breaks to encourage development of the continental shelf and unconventional oil reserves. Oil production climbed above that level in September 2009 for the first time since the collapse of the Soviet Union.

Exports declined to 5.12 million barrels a day last month, a 1.3 percent decrease from October.

Natural-gas production was 57.64 billion cubic meters, according to the data. Output at OAO Gazprom, the world’s biggest producer of the fuel, was 42.5 billion cubic meters in November.

Soviet-era crude and condensate output in Russia peaked at 11.4 million barrels a day in 1987, BP Plc (BP/) data show. Russian production, including natural gas liquids, was higher than Saudi Arabia’s in 2009 and 2010, according to BP

Baghdad had received "positive signals" from both companies that they would consider making an offer, the official added.

The sale of the stake to either company,if it goes through, would significantly strengthen the position of Russia and China in exploiting Iraq's oil reserves, the world's fourth biggest.

Exxon has informed Baghdad it wanted to pull out of the $50 billion West Qurna 1 project to focus on its deal for exploration blocks in Iraq's autonomous Kurdish region.

The sale of the stake to either company, if it goes through, would significantly strengthen the position of Russia and China in exploiting Iraq's oil reserves, the world's fourth biggest.

"During two separate meetings with executives from CNPC and LUKOIL, Iraq informed the companies that it favours their contribution to purchase Exxon's share in West Qurna-1 oilfield," the official told Reuters.

Baghdad rejects contracts signed between foreign oil companies and the Kurdistan regional government (KRG) as illegal and told Exxon it had to choose between working in southern Iraq or Kurdistan.

The U.S. oil major opted to stick with Kurdistan, where the contracts are seen as more lucrative.

"We have received positive signals from both CNPC and Lukoil that they will consider purchasing Exxon's stake in West Qurna-1," said the official on condition of anonymity.

Earlier this week, deputy prime minister for energy Hussein al-Shahristani said Iraq was in the advanced stages of talks with potential buyers to take on West Qurna and there were enough appropriate candidates.

Lukoil, Russia's second largest crude producer, was quoted by Interfax news agency as saying last week that it would study an offer from Exxon to take over the field.

The Russian company, which is already developing West Qurna-2, had previously said West Qurna-1 is "too big for it to swallow", but last week said it would look into the proposal.

The company's reputation was ravaged after an April 20, 2010 explosion on the BP-leased Deepwater Horizon rig killed 11 workers and unleashed the biggest marine oil spill in the industry's history.

It took 87 days to cap BP's runaway Macondo well 5,000 feet (1,500 meters) below the water surface as it spewed some 4.9 million barrels (206 million gallons) of oil into the Gulf of Mexico.

Thursday's settlement does not close the book on the British energy giant's lengthy and complex legal battle over the devastating spill and must still be approved by a federal judge.

BP is also still on the hook for economic damages, including the cost of environmental rehabilitation, and could pay as much as $18 billion in civil penalties.

The massive criminal fine — which will be paid over six years — will be relatively easy for BP to absorb. It has a market value of $127 billion and last month hiked its shareholder dividend after posting a bumper third quarter profit of $5.43 billion.

BP also signaled it will continue to aggressively pursue damages from rig operator Transocean and subcontractor Halliburton, which was responsible for the well's faulty cement job.

"Today's agreement is consistent with BP's position in the ongoing civil litigation that this was an accident resulting from multiple causes, involving multiple parties, as found by other official investigations," the oil giant said in a statement.

BP vowed to "continue to vigorously defend itself against all remaining civil claims and to contest allegations of gross negligence in those cases.

" Thursday's settlement includes an agreement to plead guilty to 14 criminal charges, 13 of which are "based on the negligent misinterpretation of the negative pressure test conducted on board the Deepwater Horizon," BP said.

The obstruction of Congress charge stems from two false statements BP made about flow rate estimates from the runaway well.

The fines include a record $4.0 billion to settle the criminal charges and $525 million to settle securities claims with US regulator the Securities and Exchange Commission.

Group chairman Carl-Henric Svanberg said the "resolution is in the best interest of BP and its shareholders.

" BP shares rose slightly on the news even as the energy giant said it will increase the amount it intends to set aside to cover all compensation costs to almost $42 billion from $38.1 billion. Much of that charge has already been absorbed on its balance sheets.

Environmental group Greenpeace was quick to slam the settlement as inadequate.

"This fine amounts to a rounding error for a corporation the size of BP

," Greenpeace senior investigator Mark Floegel said. "Nothing in this proposed settlement gives any oil company incentive to be more careful in future operations.

Cutting corners and skimping on safety will still be the rule of the day." BP chief executive Bob Dudley issued a statement expressing the company's deep regret for the loss of life during the accident and for the spill's impact on the Gulf coastal region.

"From the outset, we stepped up by responding to the spill, paying legitimate claims and funding restoration efforts in the Gulf," Dudley said.

"We apologize for our role in the accident, and as today's resolution with the US government further reflects, we have accepted responsibility for our actions.

" Earlier this year, BP reached an agreement to settle claims from fishermen and others affected by the disaster for $7.8 billion, but it must also still be approved by a federal judge. Over the past two years, BP has so far sold non-core assets totaling more than $35 billion to help fund the cleanup and compensation costs.

BP recently unveiled a massive strategic deal with Russian state oil firm Rosneft in an attempt to reposition itself after the Deepwater Horizon catastrophe.

Analysts believe that the Rosneft deal could lead to major exploration projects in the Arctic.

- AFP/fa

The World Energy Outlook 2012 released Monday by the Paris-based IEA also predicts that greater oil and natural gas production as well as rising energy efficiency will allow the U.S., which currently imports around 20 percent of its energy needs, to become nearly self-sufficient by around 2035.

The IEA says rebounding U.S. oil and gas production and increasing light tight oil and shale gas resources are “steadily changing the role of North America in global energy trade” and will speed up the change of direction of international oil trade from the Middle East toward Asia.

The Organization of the Petroleum Exporting Countries, in a monthly report, left its forecast for growth in world demand in 2013 almost unchanged, reducing it by 10,000 barrels per day (bpd) to 770,000 bpd. But it said a larger reduction may follow.

"The forecast oil demand growth has a notable downside risk, especially in the first half of the year," said the monthly report from OPEC's Vienna headquarters. "Much of this risk is attributed to not only the OECD, but also China and India.

" OPEC, which pumps more than a third of the world's oil, reiterated a warning it first made this summer that factors including economic weakness could shave 20 percent from next year's global demand growth assessment.

The report follows the release of OPEC's annual long-term outlook on Thursday, which said the world would need less OPEC oil in the next few years due to lower demand expectations and higher supply from outside the group, including of shale oil.

OPEC's monthly report sees a similar trend next year and reduced its estimate of the demand for OPEC crude by 80,000 bpd to 29.72 million bpd, a drop from this year and below OPEC's current production.

The group's production fell by 67,000 bpd in October to 30.95 million bpd, according to secondary sources cited by the report, led by declines in output in Nigeria, Saudi Arabia and Iran.

OPEC's report is the second of this month's trio of major oil outlooks to emerge. The U.S. government's Energy Information Administration, often more bullish on demand than OPEC, on Tuesday reduced its 2013 global demand growth estimate by 30,000 bpd to 890,000 bpd.

Details of the timeframe or companies involved were not immediately available.

Turkey's growing energy involvement in Iraq comes despite tensions with Baghdad over Ankara giving refuge to Iraq's fugitive Vice President Tareq al-Hashemi, who was sentenced to death by an Iraqi court for a second time on Thursday.

Iraq has also asked Turkey to stop attacking Kurdish rebel forces sheltering across the border in northern Iraq, a Kurdish autonomous region over which Baghdad has little control and with which Ankara has forged close ties in recent years.

"We are continuing work with the central government on opening 7,000 wells across Iraq as a whole," Yildiz told a news conference in the Turkish capital.

He also told reporters talks were being held with the Turkish treasury on holding initial public offerings (IPO) for state-owned oil firm TPAO and state pipeline company Botas, with a TPAO offering planned first.

Separately, Yildiz warned that the government would review Italian energy firm ENI's investments in Turkey if it went ahead with plans to explore for natural gas in Cyprus.

Cyprus said on Tuesday it would start negotiations with ENI, South Korea's Kogas, France's Total and Russia's Novatek on the potential development of natural gas fields off the Mediterranean island.

Turkey, which has been at diplomatic loggerheads with Cyprus for decades, claims the island has no authority to explore for gas offshore.

"If ENI becomes involved in exploration in southern Cyprus we will sit down and think about its investments in Turkey," Yildiz said.

The negotiations would cover four offshore blocks lying south and southeast of the island, and close to a gas find last year for which U.S. based Noble Energy already has concessions over.

Yildiz also said official Syrian sources have sought the renewal of electricity supplies from the Turkish private sector and said electricity could be supplied as a form of humanitarian aid if the private sector renews its contracts with Turkish state authorities.

He added that Turkey plans to produce 36 tonnes of gold in 2013 to meet half of its total gold imports. In 2011 as a whole, gold imports amounted to 79.70 tonnes, almost doubling from 42.49 tonnes a year earlier.

The International Energy Agency, which advises industrialized nations on energy policy, cut its global oil demand growth projection for 2011-2016 by 500,000 barrels per day (bpd) compared to its previous report in December 2011.

As a result, the pressure on OPEC to produce more oil will ease dramatically and the cartel will have to produce no more than 31 million bpd until 2017 to balance global demand — less than it produces at the moment.

"Expectations of economic growth through the forecast period have been reduced amid persistent OECD debt concerns, especially in the euro zone. Even China, the main engine of demand growth in the last decade, is showing signs of slowing down," the IEA said in its Medium-Term Oil Market Report.

"Readings suggest a gradual easing of prices over the forecast period."

In its previous report in December 2011, the IEA said it expected global oil demand to rise by around 8 percent between 2010 and 2016 but said it saw markets becoming less tight than in previous years.

Ten months later, it paints an even more comfortable picture, saying oil demand will rise by less than 7 percent between this year and 2017, when it will reach 95.7 million bpd.

"The demand outlook looks more subdued, while the transformative power of nonconventional oil production technologies applied in shale and tight formations in North America exceeds earlier expectations," it said.

Last year, the IEA said US production of light tight oil from shale formations was "a game-changer in the making". This year it says the impact of the new oil streams is increasing.

Global production capacity is expected to increase by 9.3 million bpd by 2017 to 102 million bpd, effectively exceeding demand by over 6 percent.

"Around 20 percent of liquids growth comes from Iraqi capacity and 40 percent from North American oil sands or light tight oil production," the IEA said.

OPEC will also spend heavily on boosting capacity, which is projected to more than double to 5-7 million bpd, a level unseen since before the 2003-2008 oil price rally.

OPEC's spare capacity is seen as the main cushion against supply disruptions and worries about dwindling capacity have been one of the main reasons behind oil price spikes in recent years.

Despite the IEA's benign outlook, the agency said there was exceptional uncertainty about the global economy and heightened regional geopolitical risks.

"Last year's string of supply disruptions, in Syria, Yemen, Sudan, the North Sea, Brazil and the Gulf of Mexico, illustrated the possibility of a 'perfect storm' of coincidental disruptions in many oil provinces," it said.

"Even those realized disruptions, however, pale in comparison with the new threat of unrest and political turmoil spreading further at the heart of the Middle East producing region," it added. Oil prices approached $130 per barrel earlier this year, not far from their 2008 peaks of $147 per barrel, due to worries over supply disruptions from Iran. "

The situation remains highly unpredictable and the sustainability of the sanctions over the longer term is evidently untested," the IEA said.

Last year,the IEA said tighter sanctions on exports of oil equipment to Iran could result in production capacity declining by almost a quarter to under 3 million bpd by 2016.

Ten months later, Iran is already producing less than 3 million bpd as Western sanctions stifle exports.

The IEA said in a separate monthly oil report yesterday that it estimated Iranian crude oil production had declined by 220,000 bpd in September to a new multi-decade low of 2.63 million bpd. .

In a report on Friday, the International Energy Agency estimated Iranian supply fell by 220,000 barrels per day (bpd) to 2.63 million bpd in September, a steeper decline than other estimates of Iranian output last month.

The drop in Iranian supply is supporting oil prices and hurting Tehran's oil revenues, deepening hardship for a population deprived of basic imports and adding pressure on the government over its nuclear programme.

Some industry sources had expected to see Iranian exports bottoming out in August and September as customers found ways to get around difficulties in obtaining insurance, such as by using Iranian tankers. The IEA did not confirm this.

"We had expected compliance to erode slightly at the margin – some of the participants were trying to evade constraints on shipping – but we haven't seen any evidence of that yet," said Antoine Halff, head of the IEA's Oil Industry and Markets Division.

The European Union banned Iranian crude from July 1 and other countries have cut purchases in response to tighter U.S. sanctions. The EU ban prevents EU insurance firms from covering Iran's exports, hindering imports by some non-EU buyers.

Industry sources said on Friday Iranian shipments may fall further in coming months as Iran's tanker fleet has been struggling to meet delivery schedules and customers have found securing adequate insurance cover a challenge.

"The Asian buyers have shipping issues around deliveries," said a source with a company that used to buy Iranian oil. "If they don't find solutions around shipping, we may see a further decline in exports."

This comes after the holding of the Kurdistan region deals with foreign oil companies such as "Exxon Mobil" and "Chevron" Americas and "Total" French without referring to the Iraqi central government, infuriating Baghdad which was considered such contracts illegal. According to the reports , Iraq is studying to go to my company "Lukoil" and "Gazprom oil" two Russian operative in Iraq to replace Western companies mentioned. / end / t. St. /