Wednesday AM Iraq Economic News Highlights 11-30-22
Iraq Plans To Increase Its Exports To 3.6 Million Barrels Next Year
Energy Economy News-Baghdad Today, Tuesday, the Iraqi Oil Marketing Company “SOMO” revealed plans to increase the daily export rate to 3.6 million barrels per day next year.
“The OPEC Plus group will meet at the beginning of next month to discuss the market situation based on its data,” noting that “a decision has been taken to reduce production by about two million barrels per day, starting from From this November, and this decision will be applied throughout the next year.
He added, “This decision is flexible and depends on assessing the reality of the market,” noting that “Iraq has a plan to increase exports by 250 thousand barrels per day at the beginning of the second half of next year, so that the daily export rate will be 3 million and 600 thousand barrels per day instead of 3 million and 350.” 1,000 barrels per day now.
He continued, “There is another plan that includes replacing the marine pipelines, which will raise the export rate to 900,000 barrels per day,” explaining that “a third plan has been put in place regarding the Japanese loan and Khor Al-Zubayr, which will increase by 900,000 barrels per day.”
He stressed that “the increase in the last two plans that were mentioned will be about one million and 800 thousand barrels per day, which will be added to 3 million and 600 thousand barrels per day, bringing the total export total to 5 million and 500 thousand barrels per day,” pointing out that “the average price of oil for this year is $97.”
Regarding the companies that import Iraqi oil, Mohsen said, “There is a long list of international companies that buy Iraqi oil, and all of them are solid companies in the Asian, American and European markets, including solid Chinese companies.”
On the position of OPEC Plus on export, he indicated that “OPEC Plus has nothing to do with the issue of export,” explaining that “Iraq belongs to the organization to determine the amount of production, but we can export any quantity, taking into account the volume of oil produced.”
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An Expected Decision For OPEC + After The Meeting Of Iraq And Saudi Arabia
Energy Economy News _ Baghdad Sources in OPEC + suggested, today, Wednesday, that the organization will keep the oil production policy unchanged in the meeting next Sunday, after the meeting of the Saudi and Iraqi energy ministers at the end of last week, who stressed the importance of adhering to production cuts that will continue until the end of 2023.
According to OPEC sources, additional production cuts are also likely to be considered to boost prices, which have fallen due to fears of an economic slowdown.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, known as OPEC+, meet as demand faces headwinds from slowing economies and China’s COVID-19 lockdown, while an EU ban on Russian crude imports looms. A ceiling on G7 prices for Russian oil places is a question mark on supply.
Oil prices, after nearing an all-time high of $147 a barrel in March, were pushed lower by the conflict in Ukraine.
In October, OPEC+ agreed to cut production by 2 million barrels per day – equivalent to 2% of global supply – causing one of its biggest clashes with the West as the US administration called the abrupt decision short-sighted.
Saudi Arabia, OPEC’s largest exporter, said on November 21 that OPEC+ was committed to production cuts and could take further measures to balance the market.
Saudi Energy Minister Abdulaziz bin Salman, Saudi Energy Minister Prince Abdulaziz bin Salman, said: “The current cut of two million barrels per day by OPEC + will continue until the end of 2023, and if further measures are needed through production cuts to balance supply and demand, We are always ready to step in.”
The official Saudi Press Agency quoted the Saudi Press Agency as saying on November 21.
And the Saudi Ministry of Energy had said in a statement on Friday that the Saudi and Iraqi energy ministers met on Thursday and stressed the importance of adhering to the OPEC + production cuts, which will continue until the end of 2023.
Views 79 Added 11/30/2022 – 9:09 AM Updated 11/30/2022 – 2:34 PM
Expert On Falling Oil Prices: The Current Situation Will Not Last For Long
Economie| 01:09 – 11/30/2022 Baghdad – Mawazine News, oil expert Hamza Al-Jawahiri said today, Wednesday, that OPEC’s decision to reduce production did not affect Iraq’s exports, but rather reduced domestic production, stressing Iraq’s commitment to the organization’s decisions because they are “fair and aim at stabilizing oil markets.”
Al-Jawahiry added, in an interview with the official newspaper, that “compliance with (OPEC) decisions is expected to make price levels range between 83-93 dollars per barrel,” adding that “the increase in prices by about 10 dollars or more compensates for the decrease, which amounts to about 220 thousand.” Barrels, and profit may increase due to price stability.”
Al-Jawahiry attributed the decline in oil prices to two main reasons, “the first is the complete closure in China of some provinces after the spread of Covid 19 again, in addition to the Russian-Ukrainian war that is putting pressure on prices, not to mention the American pressures and its attempt to compensate for the Russian oil and gas exported to Europe, as well as setting a ceiling My price ranges between 60-65 dollars per barrel, although stocks of oil and derivatives have decreased very significantly in recent weeks.
He noted that “the current situation will not last for a long time, especially with regard to pumping American oil into the markets, which has become very large, and this is what we notice through the difference between the price of Brent and West Texas, which reaches more than 7 dollars per barrel.”
And he considered, “This is a large and clear indication that prices have fallen, but they will not continue because the strategic storage of oil and derivatives in America is declining dramatically, and therefore it must be compensated from the markets themselves, from the oil offered in the global markets.”
Al-Jawahiri pointed out that “OPEC is coherent and cannot be dismantled, because if things are left without a clear policy, prices will collapse to irreversible levels.” Ended 29/N33
Parliamentary Finance: The Government Puts The Final Touches On The Budget
Posted On2022-11-30 By Sotaliraq Baghdad / bright news The Parliamentary Finance Committee confirmed that the government is currently putting the final touches on the budget before approving it and referring it to parliament, expressing its hope that it will accomplish this task during the next month.
[size=45]Committee member, Representative Mueen Al-Kazemi, said, “The Ministries of Planning and Finance have almost completed preparing the draft budget for next year.”
[size=45]Al-Kazemi added, “These two ministries are currently putting the final touches on the law by the relevant officials and under the supervision of Prime Minister Muhammad Shia’a al-Sudani.”
[size=45]He pointed out, “Prior political agreements within the state administration alliance will be implemented regarding the budget without harming the public interest.”
[size=45]Al-Kazemi stressed, “The need for an agreement to be reached regarding the oil exported from the Kurdistan region, its quantities, and how to settle the account with the marketing company (Sumer).”
[size=45]And he stated, “This also includes other financial revenues, such as revenues from border crossings, which should be discussed during meetings between officials of the federal government and the Kurdistan region.”
[size=45]Al-Kazemi spoke about “an agreement that preceded the formation of the government in order to pass the oil and gas law in order to develop legislation that ends the state of disagreement over oil wealth and its distribution, and the differences do not return every time when the budget is legislated.”
[size=45]He noted, “This law involves pitfalls and differing views on constitutional articles related to the sharing of natural resources.”
[size=45]And Al-Kazemi concluded, “Everyone hopes that the government will end its discussions on the budget during the next month, in order to submit it to Parliament.” LINK
Deputy: The 2023 Budget May Exceed $88 Billion
Money and business Economy News-Baghdad Today, Wednesday, the representative of the Sadiqoon Bloc, Zainab Jumaa Al-Mousawi, revealed some features of the draft financial budget law for the year 2023.
Al-Moussawi said in a statement, “The draft budget for next year includes in its sections basic priorities, including financial allocations for the services file, the implementation of strategic projects, job grades, and confirmation of contracts.”
Al-Moussawi added, “It is expected that the financial budget for Iraq for the year 2023 will reach 88.75 billion dollars,” noting that “it is hoped that the House of Representatives will vote on the budget for the year 2023 at the beginning of next year.”
59 views Added 11/30/2022 – 11:10 AM Updated 11/30/2022 – 2:20 PM
A New Statement From The Minister Of Finance Regarding The Next Year’s Budget
Economie| 07:52 – 11/29/2022 Baghdad – Mawazine News, Minister of Finance, Taif Sami, confirmed, on Tuesday, that the axes of the government curriculum include presenting the draft general budget for the year 2023, under the guidance of Prime Minister Muhammad Shia’a Al-Sudani.
The ministry stated, in a statement that Mawazine News received a copy of, that “Minister Taif Sami participated, today, Tuesday, in the meetings of Article IV of the agreement establishing the International Monetary Fund held in the Jordanian capital, Amman, with the participation of the Governor of the Central Bank of Iraq and representatives of the Ministry of Finance and the Federal Audit Bureau.” And the Central Statistical Organization through visual communication channels.
She added, “At the outset of the meeting, Tukhir Mirzouf, head of the Fund’s mission, and members of his team welcomed the Minister of Finance, offering her congratulations on assuming her duties, and wishing her success in her new mission.” The extents of joint cooperation with the IMF and benefiting from modern technical assistance needed by the financial sector in Iraq,” according to the statement.
According to the statement, the meeting included the Minister of Finance presenting a presentation on the mechanisms for implementing the new government curriculum, which was approved by the House of Representatives, stressing that the axes of the curriculum include presenting the draft general budget for the year 2023, in accordance with the directives of the Prime Minister.
The statement continued, “Extensive discussions have also taken place related to aspects of public expenditures and revenues achieved during 2022, which are expected until the end of this year, as well as the stages of implementation of the Food Security and Development Law for the year 2022, and real visions aimed at maximizing public revenues other than oil revenues and relevant proposals that can be discussed.” Include it in the next draft budget.” LINK
Iran Announces An Increase In Gas Exports To Iraq
Energy Economy News _ Baghdad Today, Wednesday, Iranian Oil Minister Javad Oji announced an increase in his country’s gas exports to Iraq.
Javad Oji said, in statements reported by Iranian official media, that fortunately, gas exports to Iraq increased this year by one and a half billion cubic meters compared to last year.
Regarding Iran’s collection of debts from Iraq, the minister said: Last year and this year, we were able to reach all the arrears related to exporting gas to Iraq. Last year we received about one billion euros, and this year we got about 1.6 billion euros from our arrears.
Views 24 Added 11/30/2022 – 1:55 PM Updated 11/30/2022 – 2:38 PM