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Iraq is expected to award contracts to develop its oil reserves to state run companies. Forty-one national oil companies have been pre-qualified by Iraq, including Exxon Mobil, Royal Dutch Shell, BP and China National Petroleum, said Bloomberg. They will bid in the first licensing round since US-led forces attacked the country in 2003. Talks with bidders will be held in London on October 13.

Future natural gas exports from Iran are more likely to go to Asia than europe, an Iranian industry consultant has told Bloomberg. Speaking at a conference in Holland, Bijan Khajehpour, CEO of Atieh Bahar Consulting and MD of Qeshm energy said the 'natural route of gas exports from Iran is east'. This is because of high growth in India and China, where there is also less political opposition to Iran.

Oil prices dropped to their lowest this year yesterday, as fears of a global recession continued to bite. Crude fell to $78, and was down 17% across the week on the New York Mercantile Exchange. This was its biggest dip in a single week since March 2003.