Iraqi News Economic News Highlights

Tuesday AM Iraq Economic News Highlights 11-15-22


Deputy Prime Minister: The Ministerial Council For Economy Will Discuss The Budget In The Next Session


Political | 10:50 – 11/14/2022  Baghdad – Mawazine News, Deputy Prime Minister and Minister of Foreign Affairs Fuad Hussein confirmed that the next session of the Ministerial Council for Economy will devote a large part of it to discussing the proposed budget law.


A statement of the Ministry of Foreign Affairs, a copy of which Mawazine News received, stated that “Deputy Prime Minister and Foreign Minister Fuad Hussein chaired today, Monday, the first meeting of the Ministerial Council for the Economy, in the presence of the Ministers of Planning, Trade, Agriculture, Labor and Social Affairs, the Secretary General of the Council of Ministers, and the Governor of the Bank.


The Iraqi Central Bank, acting head of the National Investment Commission, and advisors to the Prime Minister for economic affairs.


He added, “The Deputy Prime Minister welcomed the members of the Council, wishing them success in their work,” stressing the need for the Council to take its real role in drawing up economic policies that would contribute to the development of the economy and development and provide the best services to citizens.


The Deputy Prime Minister confirmed that the Ministerial Council for the Economy will devote a large part of the next session to discussing the proposed budget law in order to complete it before submitting it to Parliament.


And the statement continued, “The council also discussed the items on its agenda and took the appropriate decisions regarding them.”


The Baghdad And Erbil Stock Exchanges Closed Higher At The Exchange Rate Of The Dollar


2022-11-15 05:54   Shafaq News/ The exchange rates of the US dollar rose against the Iraqi dinar, on Monday, with the closing of the main stock market in Baghdad, and in Erbil, the capital of Kurdistan Region.


Shafaq News agency reporter said that the central Al-Kifah and Al-Harithiya stock exchanges in Baghdad closed at an exchange rate of 148,250 Iraqi dinars for 100 dollars, while the prices were 148,150 Iraqi dinars for 100 dollars this morning.


Our correspondent indicated that the buying and selling prices in exchange shops in the local markets in Baghdad rose, as the selling price reached 148,750 Iraqi dinars, while the purchase price reached 147,750 dinars per 100 dollars.


In Erbil, the stock market closed on a rise as well, as the selling price reached 148,400 dinars for every 100 dollars, and the buying price was 148,300 dinars for 100 dollars.   LINK


Iraq Is The Fifth Largest Oil Producer In The World


Shafaq News/ Iraq ranked fifth among the most oil-producing countries in the world, according to an American website.


The American World Review website said in a report seen by Shafaq News Agency, “Iraq ranked fifth as the largest oil producer in the world, at a rate of 4.260 million barrels per day, after both: the United States, which came first at a rate of 11.567 million barrels per day, and Russia came second at a rate of 10.503 million barrels per day.” And then Saudi Arabia came third at a rate of 10.225 million barrels per day, and Canada came fourth at a rate of 4.665 million barrels per day.


And she continued, “China came sixth at a rate of 3.969 million barrels per day, then the UAE came seventh at a rate of 2.954 million barrels per day, then Brazil came eighth at a rate of 2.852 million barrels per day, and Kuwait came ninth at a rate of 2.610 million barrels per day, and in the tenth place came Iran at a rate of 2.546 million barrels per day.”



She pointed out that “the United States surpassed Russia and Saudi Arabia in its oil production in 2018, despite the presence of many countries that have large oil reserves, but despite the fact that the United States of America is the largest producer in the world, it is also the largest consumer of oil in the world and imports additional oil from several countries, including Iraq.   LINK


OPEC Lowers Its Forecast For Global Oil Demand Growth: The Global Economy Is Facing Increasing Challenges


Shafaq News / OPEC, in its monthly report issued today, Monday, reduced expectations of global oil demand growth by 100,000 barrels per day in both 2022 and 2023. OPEC kept, in its monthly report on global economic growth, during 2022 at 2.7% and 2.5%. % in 2023.


She added, “The global economy entered a period of uncertainty and increasing challenges in the fourth quarter of 2022.”


On October 5, OPEC + agreed to reduce the production of the known alliance by two million barrels per day, starting next month, which angered the United States of America, which said that the decision would harm the global economy and increase inflationary pressures.


The coalition is scheduled to meet on December 4 to decide whether to cut production again, keep it stable or reverse course and pump more oil.


Saudi Energy Minister Prince Abdulaziz bin Salman said that OPEC + members look at the state of the global economy and see a lot of “doubts”.   LINK


OPEC: Iraq Increased Its Oil Production By 20 Thousand Barrels Per Day In October


Energy   Economy News-Baghdad  OPEC announced that the oil production of the 13 member states of the organization decreased to 29.494 million barrels per day in October, a decrease of 210 thousand barrels per day from last September, after the decrease in the production of Saudi Arabia and 7 other countries, while the production of Iraq increased.


According to the monthly report of OPEC, “the largest decline came from Saudi Arabia, as its oil production decreased by about 149,000 barrels per day, to reach 10.838 million barrels, followed by Angola, with a decrease of 78,000 barrels per day, followed by the Congo, with a decrease of 19,000 barrels, followed by Kuwait, with a decrease of 18,000 barrels per day.” Followed by Equatorial Guinea, down 14,000 barrels per day.


And she indicated that “the increases came from Nigeria, as its oil production increased by about 33 thousand barrels per day, to reach 1.57 million barrels per day, followed by Iraq, which recorded an increase of 20 thousand barrels per day, bringing its production to 4.572 million barrels per day, followed by Gabon, with an increase of 12 thousand barrels per day.” .


In its monthly report, OPEC lowered expectations for global oil demand growth by 100,000 barrels per day in both 2022 and 2023.  60 views   Added 11/15/2022 – 9:28 AM  Updated 11/15/2022 – 2:45 PM



Oil: We Will Stop Importing 60% Of Our Gasoline Needs In 2023


Posted On2022-11-15 By Sotaliraq   Translated by: Hamed Ahmed  The Ministry of Oil stated that Iraq will stop importing 60% of its needs for gasoline and diesel next year, expressing its aspiration to develop the refinery and refining sector despite the security, health and financial challenges.


A report by Al-Monitor, translated by Al-Mada, stated, “During his visit to the South Refineries Company on the fourth of this month, the new Minister of Oil, Hayan Abdel-Ghani, revealed his ministry’s policy of focusing on doubling the company’s oil refining capacity to reach 350,000 barrels per day, with the aim of being self-sufficient. of oil products and reduce their import.


Abdul-Ghani said, “The southern refineries are today one of the largest Iraqi refineries in terms of production and the proportion of the great work they do to meet the needs of citizens and consumers of oil products.”


Abdel-Ghani pointed out that “the workers in the southern refineries were at the level of responsibility through their distinguished efforts to continue work and production, despite the challenges and the health and economic crisis that the country faced in the previous period.”


Abdul-Ghani stressed, “Continuing to support all southern oil refineries to meet the goals set for these refineries to reach the stage in which Iraq no longer needs to import oil derivatives.”


And the report continued, “The oil refineries in Iraq suffer from major problems; As a result of its dilapidated situation and the lack of huge investments in this sector.


He explained, “This caused the country, which is the second largest oil producer in the Organization of Petroleum Producing Countries (OPEC) with its production of 4.6 million barrels per day, to import most of its needs of fuel and oil products,” noting that “half of the quantities produced by Iraqi refineries are currently They are fuel oils.


And the report continues, “Iraq spends more than $3 billion annually on importing oil products, including 1.07 million tons of gas oil at a value of $657 million, 3.46 million tons of gasoline at a value of $2.5 billion, and 163,000 tons of white oil at a value of $102 million.” dollar”.


And he added, “The Ministry of Oil conducted, on the twentieth of last month, tests on units in the Karbala refinery, hoping that the refinery will start production during the first quarter of 2023.”


The Ministry of Oil is looking forward to developing the refinery and refining sector, despite the security, health and financial challenges it faces,” said the official spokesman for the Ministry of Oil, Assem Jihad.


Jihad continued, “The ministry has completed the construction of the Karbala refinery, and is currently working on completing the Al-Faw refinery, while developing other refineries.”


Jihad pointed out that “Iraq will stop importing 60% of its needs of gasoline and diesel during the next year.”


Jihad talked about “investing this money in developing other sectors of the economy,” stressing that “the Karbala refinery will provide raw materials for secondary industries of oil products.”


In turn, the director of the Karbala refinery, Muhammad Fazaa, said, “The cost of establishing the refinery amounted to 6.5 billion dollars, and it extends over an area of 6 million square meters (1.5 million hectares), with a refining capacity of 140 thousand barrels per day.”


Fazaa added, “80% of the crude oil will be refined, as it will produce light and high-quality products.”


Fazaa indicated, “The refinery will produce 9 million liters of high-octane gasoline, 3 million liters of jet fuel, 4 million liters of diesel oil, and 1,500 cubic meters of cooking gas.”


Fazaa stated, “The amount of production in the first phase of operation will be at a rate of 85,000 barrels per day,” expecting that “it will reach its maximum capacity in the second phase.”


The report stated, “The Baiji refinery in Salah al-Din Governorate, which is considered the largest refinery in Iraq, was destroyed after it was taken over by the terrorist organization ISIS, when it was producing 300,000 barrels per day.”


He pointed out, “There are more than 15 refineries in Iraq, including those in the Kurdistan region, with a total refining capacity of more than one million barrels per day.”


The report indicated, “Iraq currently consumes 32 million liters of petrol per day and 25 million liters of diesel, according to the Directorate of Petroleum Products Distribution.”


He stressed, “The deficit in the domestic need, which amounts to more than 21 million liters per day, is covered by import.”


And the report continues, “Iraq spent during the first quarter of this year 1.5 billion dollars on the cost of importing fuel.”


He added, “The list may reach $6 billion by the end of the year,” adding that “the country previously spent $3 billion annually on fuel imports,” and attributed that to “high prices in the global market resulting from Russia’s war in Ukraine.”



The Iraqi researcher in the field of energy, Yasser Al-Maliki, said, “Iraq is suffering from high fuel prices in the global market.”


Al-Maliki continued, “The operation of the Karbala refinery helps reduce imports, but it does not achieve self-sufficiency.”


Al-Maliki noted that “the refining sector in Iraq is still weak; Because of the government’s economic policies.


Al-Maliki stressed that “foreign investors cannot invest their money in the refining sector and establish a billion-dollar refinery at a time when the state sells fuel at a subsidized price.”


The report went on to say that “the price of fuel in Iraq is very cheap; As a result of government support,” noting that “the government imports one liter of gasoline for one dollar, and sells it to the citizen at a subsidized price of 0.45 cents, which led to attempts to smuggle it to neighboring countries.”


And the researcher Al-Maliki goes back to saying, “The problems of falling oil prices and high financial allocations to the public sector made the state focus mainly on securing employee salaries instead of paying attention to developing the refining sector.”


And the report stated, “Iraq’s current plan for the oil sector includes focusing on investment in the field of associated oil gas for the purpose of operating electric power plants.”


And he added, “Although Iraq offered several investment opportunities in the refining sector, such as the Dhi Qar and Maysan refineries, it failed to attract investors.”


And the report concluded, that “this concludes from it, that Iraq will continue to import fuel over the next ten years.”


About: Al-Monitor news website     LINK