Iraq Economic News and Points To Ponder Thursday Afternoon 8-13-26

CBI Reserves Fall Sharply To $77.8B

2026-08-13 Shafaq News- Baghdad   The Central Bank of Iraq (CBI) has recorded notable shifts and a marked decline in its financial indicators, with the bank's net claims on the government rising even as official reserves shrink, economist Manar al-Obaidi, head of the Future Iraq Foundation for Economic Studies and Consultancy, revealed on Thursday.

CBI net claims on the government registered a sharp increase, reaching 66.6 trillion dinars (approximately $50.8B), compared to 35 trillion dinars (approximately $26.7B) at the start of 2025, al-Obaidi said, based on an economic reading drawing on the latest operational and banking data.

Net official reserves held by the central bank fell to 102 trillion dinars (approximately $77.8B), down from 130 trillion dinars (approximately $99.2B) at the start of 2026, al-Obaidi added, noting that July alone saw the central bank lose approximately 10.3 trillion dinars (approximately $7.9B) from its foreign currency and banking reserves.

https://www.shafaq.com/en/Economy/CBI-reserves-fall-sharply-to-77-8B

Oil Prices Retreat On Gloomy Demand Outlook

2026-08-13 Shafaq News   Oil prices eased on Thursday after gains in previous sessions, as attention turned to expectations of weaker global oil demand this year, while there was no progress on opening the vital Strait of Hormuz.

Brent futures slipped 42 cents, or 0.47%, to $88.56 a barrel by 0405 GMT. U.S., trimming gains made over the previous six sessions.

West Texas Intermediate (WTI) crude fell 55 cents, or 0.66%, to $82.72, after advancing over the past five sessions.

A senior Iranian source said on Wednesday there had been no progress in talks to revive an interim ⁠deal agreed in June and define a timeframe to implement it.

"There was little in the way of fresh developments between the U.S. and Iran, with both sides remaining in a deadlock," said ING analysts in a note on Thursday.

"Meanwhile, the latest large drone attack on Russia's Novorossiysk port appears to have spared oil infrastructure, with no reports of damage to oil terminals as of now."

With no change in the prospect of reopening the Strait of Hormuz, the key factor that had driven prices higher over the past week, attention turned to the demand outlook following a surprise build in U.S. crude stocks and lower consumption forecasts from OPEC and the International Energy Agency.

U.S. commercial crude oil inventories posted their largest weekly gain ⁠since January 2023 as exports slumped, data from the Energy Information Administration showed on Wednesday.

Crude inventories rose by 17.4 million barrels to 424.4 million barrels in the week ended August 7, their highest since June 5, the EIA said, compared with analysts' expectations in a Reuters poll for a 1.4 million-barrel draw.

On the same day, the Organization of the Petroleum Exporting Countries lowered its world oil demand ⁠growth forecast for 2026 to 580,000 barrels per day in its monthly oil market report.

At the same time, the International Energy Agency said it expects a 1.6 million bpd contraction in consumption this year, down from a forecast of 1 million bpd last month, with demand ⁠curtailed by higher prices and restricted supply due to the U.S.-Israeli war with Iran.

Still, the deadlocked talks between Iran and the U.S. to end the war in the Gulf have kept a floor under prices.

"The safety situation for navigation in ⁠these waters has further deteriorated, forcing vessels to turn off their signals, which reduces transparency in shipping and makes it more difficult for the market to track and assess actual supply levels," analysts at Haitong Futures said in a note.

(REUTERS)  https://www.shafaq.com/en/Economy/Oil-prices-retreat-on-gloomy-demand-outlook

Basrah Crudes Rise Despite Benchmark Losses

2026-08-13 Shafaq News- Basrah   Iraq’s Basrah crude prices advanced about 15% on Thursday, despite losses in benchmark crude futures.

Basrah Heavy crude increased by $7.72, or 14.01%, to $62.81 per barrel, while Basrah Medium crude added $8.72, or 15.20%, to $66.11 per barrel.

Brent crude futures fell by 42 cents, or about 0.47%, to $88.56 a barrel. US West Texas Intermediate (WTI) lost 55 cents, or 0.66%, to $82.72 a barrel.

OPEC’s basket rose to $86.60 a barrel, gaining $5.98, or 7.42%. Marban crude moved up to $90.08 a barrel, up 1.10%, while Dubai crude stood at $84.56 a barrel, 0.59% higher.

https://www.shafaq.com/en/Economy/Basrah-crudes-rise-despite-benchmark-losses-0 

US Dollar Edges Lower In Baghdad And Erbil

2026-08-13 Shafaq News- Baghdad/ Erbil   The US dollar opened Thursday's trading lower in Iraq, hovering around 152,500 dinars per 100 dollars in Baghdad and Erbil.

According to Shafaq News market survey, the dollar traded in Baghdad's Al-Kifah and Al-Harithiya exchanges at 152,750 dinars per 100 dollars, down from Wednesday’s 153,300 dinars.

In the Iraqi capital, exchange shops sold the dollar at 153,250 dinars and bought it at 152,250 dinars.

In Erbil, selling prices stood at 152,950 dinars and buying prices at 152,850 dinars.

https://www.shafaq.com/en/Economy/US-Dollar-edges-lower-in-Baghdad-and-Erbil-7

Gold Prices Dip Across Baghdad And Erbil

2026-08-13 Shafaq News- Baghdad/ Erbil   On Thursday, gold prices fell across Baghdad and Erbil, hovering around 940,000 IQD per mithqal, according to Shafaq News market survey.

Gold prices on Baghdad's Al-Nahr Street recorded a selling price of 946,000 IQD per mithqal (equivalent to five grams) for 21-carat gold, including Gulf, Turkish, and European varieties, with a buying price of 942,000 IQD. The same gold had sold for 957,000 IQD on Wednesday.

The selling price for 21-carat Iraqi gold stood at 916,000 IQD, with a buying price of 912,000 IQD.

In jewelry stores, 21-carat Gulf gold ranged between 950,000 and 960,000 IQD per mithqal, while Iraqi gold sold for between 920,000 and 930,000 IQD.

In Erbil, 22-carat gold was sold at 982,000 IQD per mithqal, 21-carat gold at 937,000 IQD, and 18-carat gold at 804,000 IQD.

https://www.shafaq.com/en/Economy/Gold-prices-dip-across-Baghdad-and-Erbil-2

Car Sales In Iraq Plunge 28%+ In H1 2026

2026-08-13 Shafaq News- Baghdad   Iraq’s car market contracted sharply in the first half of 2026, with sales falling 28.6% year-on-year to 59,264 vehicles, according to automotive market research platform Focus2move.

Kia remained the country’s largest-selling brand with a 28% market share, despite a 27.8% drop in sales. Toyota ranked second with 22% of the market as its sales fell 24%, while Nissan placed third after a 13.3% decline.

MG ranked fourth with an 8.9% share despite sales falling 31.6%, while Jetour climbed to fifth with 8.4% after recording 29.2% growth.

Among other leading brands, Hyundai recorded the steepest decline, with sales down 69.7%, while Great Wall grew 6.9%.

The electric vehicle segment suffered an even steeper contraction, with sales dropping 72%. BYD led the segment with a 48.3% share, followed by Toyota at 43.4%.

Sales grew strongly between 2021 and 2024, reaching 158,076 vehicles in 2024, before the market reversed course.

https://www.shafaq.com/en/Economy/Car-sales-in-Iraq-plunge-28-in-H1-2026