Iraq Economic News and Points To Ponder Thursday Afternoon 1-1-26
Trump's Envoy: We Are Working With The Government To Secure A Bright Future For Iraq And The Iraqi People.
Thursday, January 1, 2026, 9:52 AM | PoliticsNumber of views: 694 Baghdad / NINA / Mark Savaya, US President Donald Trump's envoy to Iraq, addressed a message to the Iraqi people on the occasion of the arrival of 2026, offering his congratulations and wishes for peace, unity, and renewed hope.
In his message, published in both English and Arabic on his X account, Savaya said, "To the people of Iraq, as we welcome the year 2026, I extend to you my sincerest wishes for peace, unity, and renewed hope. Your strength and resilience are an inspiration to the world." He added that "the new year will bring better opportunities, stability, and a brighter future for all Iraqis."
Savaya affirmed that "work will continue with the government of the Republic of Iraq within the framework of the Iraqi constitution and law to secure a bright future for Iraq and the Iraqi people," expressing his hope that "2026 will be the year of the end" of what he described as "instability, the plundering of the country's resources, and the weakness of services." /End https://ninanews.com/Website/News/Details?Key=1269583
The United Nations Affirms A Strong Partnership With Iraq To Support National Development Priorities
Local | 05:29 - 01/01/2026 Mawazin News – Baghdad
The United Nations team affirmed on Thursday its strong and robust partnership with the Iraqi government to support national development priorities.
A UN statement, received by Mawazin News Agency, indicated that with the conclusion of the mandate of the United Nations Assistance Mission for Iraq (UNAMI), the UN team in Iraq continues its work under the leadership of the UN Resident Coordinator.
The statement added that the UN team works in close partnership with the Iraqi government to support national development priorities through the framework of the UN Sustainable Development Cooperation Document (2025–2029), signed on December 25, 2025.
It noted that this transition represents a clear step towards achieving long-term, sustainable development led by national leadership and based on stronger institutions and effective partnerships.
The statement concluded by emphasizing that, from supporting economic diversification, climate action, and water resource management to strengthening social protection, governance, and sustainable solutions, the United Nations continues its role as a trusted and committed partner in supporting the Iraqi government. https://www.mawazin.net/Details.aspx?jimare=272130
Iraq Exported More Than 70 Million Barrels Of Oil To The US In 10 Months.
Money and Business Economy News — Baghdad The U.S. Energy Information Administration announced on Thursday that Iraq's exports of crude oil and petroleum products to the United States amounted to more than 73 million barrels during the first 10 months of 2025.
A table from the administration showed that "Iraq exported 73 million and 449 thousand barrels of oil and its derivatives during the 10 months from January to September of last year."
The U.S. Energy Information Administration reported that Iraq's crude oil exports to the United States during the first ten months of last year showed varying figures, with exports in January reaching 7,136,000 barrels, February 5,427,000 barrels, March 7,040,000 barrels, April 6,951,000 barrels, May 7,114,000 barrels, June 8,262,000 barrels, July 9,528,000 barrels, August 10,234,000 barrels, September 6,285,000 barrels, and October 5,472,000 barrels.
According to the data, August was the highest in terms of the volume of Iraqi oil exports to America, while February was the lowest during the aforementioned period.
According to data from the U.S. Energy Information Administration (EIA), Iraq's exports to the United States are concentrated on crude oil, particularly heavy crude, with limited or no exports of refined petroleum products.
https://economy-news.net/content.php?id=64082
Oil Records Its Biggest Annual Decline Since 2020... Down 20% In 2025
Energy Economy News — Follow-up Oil prices fell sharply on Wednesday, settling down on an annual loss of nearly 20%, as expectations grew of a supply glut in a year marked by wars, high tariffs, increased OPEC+ production, and sanctions on Russia, Iran, and Venezuela. Brent crude futures recorded a decline of nearly 19% in 2025, the largest annual percentage drop since 2020 and the third consecutive year of losses, marking their longest losing streak to date.
Venezuela shuts down oil wells in the Orinoco Belt due to escalating US sanctions.
US West Texas Intermediate crude oil recorded an annual decline of 20%.
On the last trading day of 2025, Brent crude fell 48 cents, or 0.8%, to settle at $60.85 a barrel, while U.S. West Texas Intermediate crude dropped 53 cents, or 0.9%, to $57.42.
Jason Ying, a commodities analyst at BNP Paribas, predicted that Brent crude would fall to $55 a barrel in the first quarter of 2026 before recovering to $60 for the rest of the year, as supply growth is expected to return to normal and demand remains steady.
US Shale Oil Producers Hedge
He said, "We believe that US shale oil producers have managed to hedge at high levels... so supplies coming from shale oil producers will be more stable and less affected by price movements."
Data from the U.S. Energy Information Administration showed that U.S. crude inventories fell last week, but distillate and gasoline stocks grew more than expected.
John Kilduff, a partner at Again Capital Markets, said, "The EIA report offered modest support regarding the decline in crude oil inventories, but the internal aspects of the report were not so good, and January and February are likely to be difficult months as the holidays pass."
US Crude Oil Inventories Decline
The U.S. Energy Information Administration reported that crude oil inventories fell by 1.9 million barrels to 422.9 million barrels in the week ending December 26, compared with analysts' expectations in a Reuters poll of a drop of 867,000 barrels.
The Energy Information Administration (EIA) reported that U.S. gasoline inventories rose by 5.8 million barrels during the week to 234.3 million barrels, compared to analysts' expectations of a 1.9 million barrel increase. Distillate fuel inventories, including diesel and heating oil, rose by 5 million barrels to 123.7 million barrels, versus expectations of a 2.2 million barrel increase.
The latest data from the Energy Information Administration indicated that U.S. oil production hit a record high in October.
Oil markets got off to a strong start in 2025 when former US President Joe Biden ended his term by imposing tougher sanctions on Russia, disrupting supplies to China and India, the biggest buyers of Russian crude.
The Conflict Between Russia And Ukraine
The war in Ukraine intensified when drones launched by Kyiv damaged Russia's energy infrastructure and disrupted Kazakhstan's oil exports.
The 12-day Iran-Israel conflict in June increased threats to supplies by disrupting shipping in the Strait of Hormuz, a key seaborne oil route in the world, leading to higher oil prices.
Blockade On Venezuelan Oil Exports
US President Donald Trump ordered a blockade on Venezuelan oil exports and threatened to launch another strike against Iran.
But prices fell after the OPEC+ alliance, which includes the Organization of the Petroleum Exporting Countries (OPEC) and its allies, accelerated its production increase this year, and amid growing concerns about the impact of US tariffs on global economic growth and fuel demand.
Oil Price Forecasts For 2026
Most analysts expect supply to exceed demand in 2026, by a margin of between 3.84 million barrels per day according to the International Energy Agency, and 2 million barrels per day according to Goldman Sachs.
Morgan Stanley analyst Martin Rats said: "If the price falls really big, I imagine we'll see some cuts (from OPEC+)... but maybe the price should fall further from now on - perhaps to the $50 mark." https://economy-news.net/content.php?id=64067
The Price Of An Ounce Of Gold Fell By $18 After An Exceptional Year Of Strong Gains
Thursday, January 1, 2026, | Economy Number of views: 409 Baghdad/ NINA / The price of an ounce of gold fell by approximately $18.67 as global markets closed on Wednesday evening, settling at $4,322.
This decline is primarily attributed to profit-taking by investors following the significant rise in gold prices last week, which led to the price drop in recent days.
Despite this decrease, the precious metal recorded its strongest annual increase in over four decades, rising by 64.60% during 2025.
On January 2, 2025, the first day of the year in which global markets opened, the price of an ounce of gold was $2,624, meaning that gold rose by $1,698 during the year.
The main reason for this increase began in late April following US President Donald Trump's decisions to impose global tariffs, and this upward trend continued until the end of the year.
Ongoing global tensions, interest rate cuts by the US Federal Reserve, large-scale gold purchases by central banks, and increased investment in gold-backed investment funds all contributed to this rise.
The minutes of the Federal Reserve's September meeting indicated that a majority of officials supported further interest rate cuts if inflation continued to decline, although opinions remained divided on the timing and magnitude of such a reduction.
Politically and in terms of security, gold continued to serve as a safe haven for investors amid uncertainty surrounding the fate of the Russia-Ukraine peace agreement, renewed tensions in the Middle East, and escalating tensions between the United States and Venezuela. /End https://ninanews.com/Website/News/Details?key=1269586
An Expert Explains The Reasons For Deflation Despite Low Inflation Rates.
Time: 2026/01/01 18:14:34 Reading: 120 times {Economic: Al-Furat News} Economic expert Salah Nouri confirmed on Thursday that the relationship between the decrease in the inflation rate and economic recovery depends mainly on consumer behavior and the purchasing power of the currency, noting that citizens’ expectations of further price decreases may sometimes lead to a temporary state of stagnation.
Nouri told Al-Furat News Agency, in a copy of which he said, “In normal circumstances, the relationship between a decrease in the inflation rate leads to an economic recovery, as it represents an increase in the purchasing power of the local currency and a decrease in the prices of basic commodities,” explaining that “this decrease pushes citizens towards spending, which enhances market activity and achieves recovery.”
He added that "the tendency to buy goods depends primarily on consumer behavior," explaining that "there are rare cases where a decrease in the inflation rate coincides with an economic recession."
Nouri continued, "Some economists attribute this situation to the consumer's desire and expectation of further price reductions, which reduces market demand compared to supply," stressing that "this behavior leads to economic contraction (recession), a situation considered temporary." LINK
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