Iraq Economic News And Points To Ponder Tuesday Afternoon 4-28-26

UAE Withdraws From OPEC And OPEC+, Effective May 1

2026-04-28 Shafaq News- Abu Dhabi   The United Arab Emirates announced Tuesday its decision to withdraw from OPEC and the OPEC+ effective May 1, citing the country's evolving energy profile and long-term economic strategy.

According to a statement issued by UAE authorities, the decision follows a comprehensive review of the country's production policy, current output capacity, and projected future capacity.

The UAE said the move is grounded in national interest and in the country's commitment to meeting what it called the market's pressing needs. Under the OPEC+ framework, members have coordinated production cuts since 2016 to stabilize global oil prices, an arrangement the UAE will no longer be bound by as of next week.

The UAE joined OPEC in 1967 through the Emirate of Abu Dhabi —before the federation's formal establishment in 197 — and has since been one of the group's most consequential members, producing approximately 3.2 to 3.5 million barrels of crude oil per day.

The Emirati authorities said the country would continue bringing additional production to market "in a gradual and measured manner," guided by demand and market conditions, and reaffirmed that its exit does not alter its commitment to global market stability. https://www.shafaq.com/en/Economy/UAE-withdraws-from-OPEC-and-OPEC-effective-May-1

Iraq’s January 2026 Revenues Exceed $6.1B

2026-04-27 Shafaq News- Baghdad   The Iraqi federal budget revenues for January 2026 exceeded 8 trillion Iraqi dinars (over $6.1 billion), the Ministry of Finance reported on Monday.

According to the official data, total revenues reached 8.537 trillion dinars ($6.5 billion), marking a 6% increase compared to 8.040 trillion dinars ($6.1 billion) recorded in January 2025.

Oil revenues amounted to 7.075 trillion dinars ($5.4 billion), accounting for 83% of total public income, while non-oil revenues totaled 1.462 trillion dinars ($1.1 billion).

The data also indicated that non-oil revenues transferred from the Kurdistan Region to the federal treasury stood at 120 billion dinars ($92 million).

On the expenditure side, total current spending reached 8.345 trillion dinars ($6.4 billion). Public sector salaries accounted for 5.087 trillion dinars ($3.9 billion), while pensions totaled 1.598 trillion dinars ($1.2 billion). Social welfare payments amounted to 458 billion dinars ($350 million). https://www.shafaq.com/en/Economy/Iraq-s-January-2026-revenues-exceed-6-1B

Oil Prices Climb On Continued US-Iran War Deadlock

2026-04-28 Shafaq News   Oil prices rose 1% on Tuesday, extending gains from the previous session, as efforts to end the U.S.-Iran war appear stalled, with the crucial Strait of Hormuz waterway still mainly shut, keeping energy supplies from the key Middle East producing region out of the reach of global buyers.

U.S. President Donald Trump is unhappy with the latest Iranian proposal aimed at ending the war, a U.S. official said on Monday. Iranian sources disclosed on Monday that Tehran's proposal avoided addressing its nuclear program until hostilities cease and Gulf shipping disputes are resolved.

Trump's ⁠displeasure with the Iranian offer leaves the conflict deadlocked, with Iran shutting shipping flows through the Strait of Hormuz, which typically carries supply equal to about 20% of global oil and gas consumption, and the U.S. keeping in place its blockade of Iranian ports.

Brent crude futures for June climbed $1.41, or 1.3%, to $109.64 a barrel as of 0400 GMT, after gaining 2.8% in the previous session to its highest close since April 7. The contract is up for a seventh day.

U.S. West Texas Intermediate (WTI) crude for June rose $1.27, or 1.3%, to $97.64 a barrel, after gaining 2.1% in the previous session.

An earlier round of negotiations between the U.S. and Iran collapsed last week following failed face-to-face talks.

"Talks around ‘peace’ still look largely superficial and lack ⁠concrete evidence of de-escalation. Despite the rhetoric, vessel movement through the Strait of Hormuz remains curtailed, and that prolonged disruption is what's keeping oil risk premiums elevated," said Phillip Nova's senior market analyst Priyanka Sachdeva.

"In the near term, oil markets are less about macro demand and more about diplomatic gridlock. Until diplomacy translates into actual barrel flows, not just statements, oil markets will remain volatile with an ⁠upward bias through May," she added.

Ship-tracking data revealed significant disruptions in the region, with six Iranian oil tankers forced to turn back due to the U.S. blockade.

However, a liquefied natural gas tanker managed by the United Arab Emirates' Abu Dhabi National Oil Co did cross ⁠the Strait of Hormuz and appears to be near India, ship-tracking data showed on Monday.

Prior to the U.S.-Israeli war on Iran, which began on February 28, between 125 and 140 vessels transited the strait daily.

The market is also looking ahead to ⁠private and government U.S. inventory data for later this week.

Analysts polled by Reuters are expecting U.S. crude inventories to have risen by 300,000 barrels in the last week, with official data from the U.S. Energy Information Administration set for release on Wednesday.  (Reuters)

https://www.shafaq.com/en/Economy/Oil-prices-climb-on-continued-US-Iran-war-deadlock

Basrah Crudes Lead Regional Oil Benchmarks

2026-04-28 Shafaq News- Basrah   Basrah crude prices recorded gains of around 0.59% on Tuesday, while global oil markets held firm.

Basrah Heavy crude rose by 71 cents, to $121.08 per barrel. Basrah Medium crude increased by 71 cents, to settle at $123.18 per barrel.

In contrast, several regional grades declined, with Saudi Light at $119.48 per barrel, Kuwait crude at $107.37, and UAE’s Murban at $103.57.

Globally, Brent crude futures rose $1.41, or 1.3%, to $109.64 a barrel. US West Texas Intermediate (WTI) crude were also up $1.27, or 1.3%, at $97.64.

Iraq prices its crude based on export destinations, with shipments to Asia linked to the Dubai and Oman benchmarks, exports to Europe tied to Brent with premiums or discounts, and cargoes to the United States priced against WTI in line with market conditions.   https://www.shafaq.com/en/Economy/Basrah-crudes-lead-regional-oil-benchmarks-2

Gold Prices Drop In Baghdad And Erbil Markets

2026-04-28  Shafaq News- Baghdad/ Erbil   On Tuesday, gold prices hovered around 1 million IQD per mithqal in Baghdad and Erbil markets, according to a Shafaq News market survey.

Gold prices on Baghdad's Al-Nahr Street recorded a selling price of 1,005,000 IQD per mithqal (equivalent to five grams) for 21-carat gold, including Gulf, Turkish, and European varieties, with a buying price of 1,001,000 IQD. The same gold had sold for 1,025,000 IQD on Monday.

The selling price for 21-carat Iraqi gold stood at 975,000 IQD, with a buying price of 971,000 IQD.

In jewelry stores, the selling price per mithqal of 21-carat Gulf gold ranged between 1,005,000 and 1,015,000 IQD, while Iraqi gold sold for between 975,000 and 985,000 IQD.

In Erbil, 22-carat gold was sold at 1,050,000 IQD per mithqal, 21-carat gold at 1,002,000 IQD, and 18-carat gold at 859,000 IQD.   https://www.shafaq.com/en/Economy/Gold-prices-drop-in-Baghdad-and-Erbil-markets-8

Iraq’s Basra Wheat Intake Set To Exceed 24K Tons

2026-04-28 Shafaq News- Basra   Wheat intake in southern Iraq’s Basra province is projected to exceed 24,000 tons this agricultural season, a local official told Shafaq News on Tuesday, with marketing operations now underway.

Receiving centers are fully prepared, offering sufficient silo capacity and a regulated system to manage truck entry and unloading, according to Hadi Hussein, head of the Basra Agriculture Directorate. Peak deliveries, he noted, are anticipated in May and will continue through June, while urging farmers to adhere to schedules to ensure smooth processing.

Harvesting began last week in Basra with average yields of about 750 kg per dunam (0.25 hectares), covering 3,937 dunams under the government plan and 7,500 dunams outside it.

In Kirkuk, production is projected at around 600,000 tons this season, reinforcing its role as a key grain-producing province. Zuhair Ali Hussein, head of the Kirkuk Agriculture Directorate, said average yields are estimated at about 1,250 kilograms per dunam, supported by improved farming methods, technical assistance, and favorable weather. Iraq’s 2026 wheat production is forecast at 5 million tons, down from 6.3 million in 2025, while imports are expected to rise to 2.1 million tons.   https://www.shafaq.com/en/Economy/Iraq-s-Basra-wheat-intake-set-to-exceed-24K-tons