Iraqi News Highlights Wednesday Afternoon 10-12-22
Iraq And OPEC + .. How Will It Be Affected By The Production Cut And What Fields Are Included?
Reports Economy News-Baghdad Next month, Iraq will begin to cut 220 thousand barrels per day from its production of 4.65 million barrels per day, in response to the OPEC Plus agreement.
The OPEC Plus alliance consists of 20 countries, producing 43.85 million barrels per day, and decided to reduce production by two million barrels, in order to reduce the supply in the oil market, which exceeds 105 million barrels per day, while demand is 102.4 million barrels.
In a statement to Al-Iqtisad News, the oil expert, Hamza Al-Jawahiri, believes that the goal of the latest OPEC Plus decision is to achieve stability in the oil market and not to drop oil prices.
The OPEC Plus countries aim to keep the price of a barrel of oil above $80 to support their budgets and implement infrastructure projects in their countries.
An informed source told “Economy News”, that “Iraq will reduce the national fields in the south, specifically in the governorates of Basra, Dhi Qar, Maysan and Wasit,” noting that “the volume of exports may be affected very slightly.”
He pointed out that “the fields supervised by international companies, which are called licensing roving fields, will not allow the companies any reduction, due to the international energy crisis and the need for these companies to use oil in their refineries.”
The government spends 9 trillion dinars per month to finance the budget, as it needs the price of a barrel of oil to be $70 to achieve the fiscal budget revenues.
OPEC Plus decided to reduce production by 4.7%, as Iraq’s production currently stands at 4.65 million barrels per day, including the production of the Kurdistan region’s oil, which exceeds 550,000 barrels per day, as it requires the region to reduce its production by 11.8%, or about 65 thousand barrels per day.
For his part, the Saudi oil expert, Muhannad Al-Shahbol, says that “Iraq’s history in the OPEC Plus agreement shows that it is a country that is not committed to the agreement, due to the political nature, as the Kurdistan region is not subject to the federal government.”
The latest OPEC+ decision is the second-highest reduction it has taken in its history, after cutting 10 million barrels per day in May 2020 after oil prices fell to less than $30, and gradually reduced it.
Some OPEC Plus countries will not be able to reduce their production, as a result of its decline to large levels, such as Algeria, Angloa, Kango and others, while Iraq is required to reduce 220 thousand barrels per day out of its production of 4.65 million barrels.
Most of the oil-consuming countries have witnessed a significant increase in the prices of oil derivatives since the beginning of this year, such as France 77%, America 84% and Britain 70%.
6 countries in OPEC Plus out of 20 countries, will decrease more than 1.56 million barrels, due to their high production, including Iraq, Saudi Arabia, Russia, Kuwait and the UAE.
Views 197 Added 10/12/2022 – 11:11 AM Update 10/12/2022 – 5:22 PM
The Continued Decline In Global Oil Prices
Economie| 08:54 – 10/12/2022 Follow-up – Mawazine News: Oil prices fell for the third consecutive session, on Wednesday, as investors feared that the demand for fuel would be affected by the increasing risks of a global recession and the tightening of restrictions on COVID-19 in China.
Brent crude futures were down 43 cents, or 0.46 percent, at $93.86 a barrel by 04:28 GMT. US West Texas Intermediate crude was $88.82 a barrel, down 53 cents, or 0.59%.
Both benchmarks also fell 2% in the previous session.
The International Monetary Fund on Tuesday lowered its global growth forecast for 2023, and warned of an increased risk of a global recession, but also urged central banks to continue their fight against inflation even as investors worried that policymakers could cause a severe economic downturn by raising costs. Borrow too fast and too high.
The dollar rose broadly, after a senior Bank of England official told pension fund managers to finish rebalancing their positions by Friday, when the Bank of England is set to end its bond-buying programme.
A strong dollar makes dollar-denominated commodities more expensive for holders of other currencies and tends to affect oil and other risky assets.
The oil market is also under pressure from the tightening of COVID-19 restrictions in China, the world’s second largest oil consumer.
Major Chinese cities, including Shanghai and Shenzhen, have ramped up COVID-19 testing and tightened restrictions after infections surged to their highest levels since August.
Last week, the Organization of the Petroleum Exporting Countries and allies including Russia, collectively known as OPEC+, decided to cut production target by two million barrels per day.
Iraq Tops The List Of Arab Countries With Economic Growth For 2022
Money and business Economy News _ Baghdad Iraq is heading towards achieving the highest economic growth rate among the Arab countries for the year 2022 by 9.3%, and half a percentage point higher than the expectations of April, taking advantage of the rise in oil prices.
This came according to a report issued by the International Monetary Fund for the month of October, which was reviewed by “Al-Iqtisad News”, and it was titled “Global Economic Prospects”.
According to the fund’s report, it estimates the average price of a barrel of oil at $98 this year, to drop to $85.5 next year 2023.
The report indicated that Kuwait comes in second place with growth this year, which will reach 8.7%, followed by Saudi Arabia third with 7.6% growth, then Egypt comes fourth with 6.6% growth, then the UAE 5.1%, Algeria 4.7%, Oman 4.4%, Palestine 4% and each of Qatar and Bahrain with a growth of 3.4%.
The report expected that Jordan would reach 2.4%, then Tunisia 2.2%, then Yemen 2%, and Morocco 0.8%, while growth in Sudan would decline by 0.3%.
Views 103 Added 10/12/2022 – 9:52 AM Update 10/12/2022 – 5:20 PM
“Investing Iraq’s Money In America” .. A Former Candidate For Prime Minister Presents A Detailed Project To End The Housing Crisis
Money and business Economy News-Baghdad The former candidate for prime minister, Muhammad Tawfiq Allawi, presented the details of a project plan to end the housing crisis in Iraq, by building two million housing units within six years at a cost of $25 billion.
Allawi said in a post on his Facebook page that “there is a great lack of adequate housing, many citizens live in slums and houses in a miserable and tragic condition, at the beginning we need a well-thought-out housing plan and we need people who are able to turn this plan into reality.”
With regard to housing projects, Allawi explained that Iraq “needs at least two million housing units distributed over twenty cities or residential complexes in all governorates of Iraq, in each complex of up to one hundred thousand housing units, half of which are distributed as lands and the other half as built housing units.”
He suggested that “the project will be in several stages. It is possible to implement the project in four stages, each stage for half a million housing units, half of which are land and half are built units. Each stage takes a year and a half, which means providing two million housing units within a period of six years.”
And he set the cost of the project “up to twenty-five billion dollars, according to semi-detailed preliminary studies of two million housing units. Martyrs and poor families.
As for the method of financing the project, Allawi said, “We have funds from the central bank reserves deposited in the US Federal Bank, which can easily be converted into assets inside Iraq, which are residential homes on the internationally recognized basis (Mortgage), and this does not affect at all on the reserve, where the reserve is either deposited money.
Or assets on the ground that pay their full values within limited periods of time, and this is exactly what developed countries do with the reserves of their central banks, but unfortunately there is a high degree of ignorance inside Iraq so that they do not know or understand these facts.”
He pointed out that “the Iraqi budget resources have increased due to the rise in oil prices, but we may not need money from the budget as we can think of the Chinese agreement to establish infrastructure, so we can initially rely on the Chinese agreement with the Belt and Road Initiative for infrastructure because there was an agreement with the government of Adel Abdul Al-Mahdi set a minimum limit for this agreement to give a loan of ten billion dollars to the reconstruction by Chinese companies, and the upper limit was to give a loan of thirty billion dollars to the reconstruction, and I think we must move towards the upper limit to obtain a loan of thirty billion dollars.
He pointed out that “not all of the thirty billion dollars will be used for housing, but we can assume for the sake of argument that we will allocate $10 billion for housing, and this amount covers the cost of all infrastructure for two million housing units.”
He cautioned that “the establishment of this project does not mean that we will provide two million housing units only, but this will provide opportunities for the work of very large numbers of engineers and professionals in different sectors, and most importantly, such a project will provide opportunities for the establishment of many construction industries, such as cement factories.
Glass and aluminum factories, iron and steel factories, ceramics factories, mosaics and bathroom furniture, electrical wires factories, electrical installations and lighting, and many other industries that will bring about a great renaissance in the country and provide job opportunities for millions, and I think that the need will exceed the number of qualified engineers, professionals and others.”
He pointed out that “this project can be shortened by eliminating the problem of housing and slums during a period of six years and creating a real and major renaissance in the country and creating job opportunities for millions of the unemployed without assigning the state budget to one dollar.
It was preceded by governments in which many corrupt and incompetent ministers work for their personal interests and the interests of their political parties. In this case, we will not be able to establish such promising projects and we cannot achieve a real renaissance in the country.”
Views 290 Added 10/12/2022 – 9:03 AM Update 10/12/2022 – 5:31 PM
Al-Kazemi’s Advisor: Extinguishing Foreign Debt From Financial Surpluses Needs A Law
Money and business Economy News – Baghdad The financial advisor to the Prime Minister, Mazhar Muhammad Salih, explained, on Wednesday, the mechanism for repaying loans and debt installment payments, while stressing that extinguishing external debts from financial surpluses requires a law.
Saleh said, to the official news agency, that “the repayment of loans is subject to specific mechanisms and agreements in repayment within the so-called public debt management,” noting that “the payments of debt installments are subject to allocations within the actual current expenditures covered by paragraph 13 of the Federal Financial Management Law No. 6 For the amended year 2019, and the annual budgets laws shall set the allocations for outstanding debt services.
He added, “There are undrawn international loans whose withdrawals are spent on specific projects such as the projects of the Japan International Cooperation Agency or projects funded by the World Bank and funds for European governments,” noting that “external borrowing issues are among the usual issues recognized in international finance, especially if It was for developmental purposes and free of acquiescence and various conditionalities.”
He continued, “Extinguishing the remnants of external debt from the expected financial surpluses is an issue that needs a law or a text in the next general budget law, provided that it is not linked to the generation of risks for claims for almost non-existent international debts that belong to the previous regime.” 9 . views Added 10/12/2022 – 5:19 PM Update 10/12/2022 – 5:22 PM
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