Friday AM Iraq Economic News Highlights 7-1-22

Kurdistan Is Taking Legal Moves To Counter Baghdad's Pressure On The Oil And Gas File

Political | 07:27 - 30/06/2022   Kurdistan - Mawazine News  The Kurdistan Region announced, on Thursday, that it has taken constitutional legal moves to confront the pressures exerted by Baghdad regarding the oil and gas file related to the region, stressing at the same time that the federal government sent only 400 billion dinars out of a total of 1.2 trillion dinars in the first half of this year.

This came during the first meeting held by the Regional Council for Oil and Gas Affairs, after the amendment of the Oil and Gas Law, headed by the Prime Minister of the Kurdistan Regional Government, Masrour Barzani, and in the presence of the Deputy Prime Minister and Deputy Chairman of the Regional Council for Oil and Gas Affairs Qubad Talabani.

According to an official statement issued by the media office of the Prime Minister, Mawazine News received a copy of it, that the meeting discussed oil revenues and expenditures for the first six months of 2022.

The statement added that in the first paragraph of the meeting, the general revenues obtained from the export and sale of oil were presented, which include the total oil produced, exported and consumed locally, in addition to the average price of a barrel of oil sold during this period.

He pointed out that the meeting dealt with "how to spend revenues in financing the salaries of the six months of this year, as the Kurdistan Regional Government provided the necessary funds from oil revenues to fully finance salaries for six months of 2022."

The statement stated, "While the federal government should have sent one trillion and 200 billion dinars during the first six months of 2022, it only sent a two-month amount of 400 billion dinars, while the regional government provided salaries monthly from oil revenues and internal revenues, and distributed salaries in Per month".

The statement stated that the meeting also discussed other government expenditures, except for salary expenditures obtained from oil revenues in the first six months of 2022, and it was decided to present the Deloitte report, which is supported by statistics, information and figures, to public opinion next week.

The meeting also stressed, according to the statement, "the need to enhance transparency in this direction, as the region provides the federal government with all information and numbers, and it does so even for public opinion in the region, Iraq and abroad, and will continue to do so, especially since the recent report of the joint team of the financial audit bureaus of the region and Baghdad." Regarding the audit of revenues, expenditures, debts and staffing, there is evidence of this fact.”

The second period of the meeting dealt with the latest developments regarding the relationship between the Kurdistan Regional Government and the federal government over the dispute over oil and gas, as well as the legal preparations made by the Kurdistan Regional Government, under the constitution, to confront the pressures of the federal government and the Federal Ministry of Oil.

The meeting stressed the need to solve problems in accordance with the constitution, and reiterated the region's negotiating delegation's readiness to visit Baghdad in this regard, according to the statement. Ended 29/R77    https://www.mawazin.net/Details.aspx?jimare=198115

Low Oil Prices

Economie| 09:58 - 01/07/2022  BAGHDAD - Mawazine News: Oil prices fell today, Friday, amid persistent fears of stagnant demand that cast a shadow on sentiment and put the benchmark crude on the path of incurring a third consecutive weekly loss.

By 04:28 GMT, Brent crude futures fell 20 cents, or 0.2%, to $108.83 a barrel, giving up gains of more than a dollar earlier in the session.

West Texas Intermediate crude futures for August delivery fell 37 cents, or 0.4%, to $ 105.39 a barrel, giving up earlier gains during the session, which amounted to nearly a dollar.

The two crudes fell by about 3%, yesterday, Thursday.

The OPEC + alliance, which includes the Organization of the Petroleum Exporting Countries (OPEC) and independent producers, including Russia, agreed to adhere to the applicable production policy after two days of meetings, but the alliance avoided discussing production policy from September onwards.

OPEC + had decided to increase production per month by 648,000 barrels per day in July and August, in an increase from a previous plan to increase production by 432,000 barrels per day on a monthly basis.

US President Joe Biden's visit to the Middle East in mid-July includes a visit to Saudi Arabia, highlighting energy policy as the United States and other countries grapple with rising fuel prices that drive up inflation.

A Reuters poll on Thursday revealed that oil prices are expected to remain above $100 a barrel this year as Europe and other regions seek to move away from Russian oil and gas supplies, although economic concerns may slow price increases.    https://www.mawazin.net/Details.aspx?jimare=198147

The Stability Of The Dollar Exchange Rates In The Local Markets

Economie   2022-07-01 | 03:21   Source:  Alsumaria news   1,785 views   Today, Friday, the dollar exchange rates witnessed stability in the local markets.

And the selling prices of the dollar were 148000 dinars per 100 dollars, while the purchase prices of the dollar were 147,900 dinars per 100 dollars.

Earlier, he decided Central Bank of Iraq Adjusting the exchange rate of the dollar against the Iraqi dinar, as the purchase price of the dollar from the Ministry of Finance amounted to 1450 dinars, while the price of selling it to banks was set at 1460 dinars per dollar, while the selling price to the citizen was 1470 dinars per dollar.     LINK

Learn About The Dollar Exchange Rate  

Economie | 09:46 - 01/07/2022   Baghdad - Mawazine News   The dollar exchange rates witnessed stability today, Friday, on the Iraqi Stock Exchange.  And the selling prices of the dollar were recorded at 148,500 dinars per 100 dollars, while the purchase prices of the dollar were recorded at 147,500 dinars per 100 dollars. https://www.mawazin.net/Details.aspx?jimare=198146

Seven billion dinars to develop services in Al-Baghdadi in Anbar

Posted On2022-06-30 By Sotaliraq   The director of Al-Baghdadi district, Sharhabeel Al-Obaidi, announced, on Thursday, the allocation of a financial budget to a district in the western regions to improve its service situation.

Al-Obaidi said in a statement that "the Anbar local government has allocated a financial budget of 7 billion dinars to advance the service situation in the Al-Baghdadi district in the district of Hit, west of Anbar."

He added, "Some of the district lacks electricity that has been missing for more than 50 years, as well as there are areas where there are no potable water purification plants, and its residents depend on digging wells."

He added, "The district needs urgent financial allocations in order to carry out the tasks of the reconstruction file and work to complete the rehabilitation operations for the road, electricity and water networks."

It is noteworthy that some areas of Al-Baghdadi district, west of Anbar, have not seen the light for more than half a century, and their residents live without electric current despite the high temperatures. LINK

Masrour Barzani Oversees The First Meeting Of The Regional Council For Oil And Gas Affairs

Posted On2022-06-30 By Sotaliraq   Today, Thursday, the Prime Minister of Kurdistan Regional Government and Chairman of the Regional Council for Oil and Gas Affairs, Masrour Barzani, supervised the first meeting of the Regional Council for Oil and Gas Affairs after amending the Oil and Gas Law.

At the meeting, which was attended by the Deputy Prime Minister and Deputy Chairman of the Regional Council for Oil and Gas Affairs Qubad Talabani, they discussed oil revenues and expenditures for the first six months of 2022, according to a statement by the regional government.

In the first paragraph of the meeting, the general revenues obtained from the export and sale of oil were presented, which include the total oil produced, exported and consumed locally, in addition to the average price of a barrel of oil sold during this period.

After that, it was discussed how the revenues were spent in financing the salaries of the six months of this year, as the Kurdistan Regional Government provided the necessary funds from oil revenues to fully finance salaries for six months of 2022, while the federal government should have sent one trillion and 200 billion dinars. During the first six months of 2022, however, it sent only two months' worth of 400 billion dinars, while the KRG provided salaries monthly from oil and internal revenues, and distributed salaries each month.

The meeting also discussed other government expenditures, except for salary expenditures obtained from oil revenues in the first six months of 2022, and it was decided that the Deloitte report, enhanced by statistics, information and figures, would be presented to public opinion next week.

The meeting also stressed the need to enhance transparency in this direction, as The region provides the federal government with all information and figures, and it does so even for public opinion in the region, Iraq and abroad, and will continue to do so, especially since the recent report of the joint team of the Financial Supervision Bureaus of the region and Baghdad regarding the audit of revenues, expenditures, debts and staffing, is evidence of this fact.

The second period of the meeting dealt with the latest developments regarding the relationship between the Kurdistan Regional Government and the federal government over the dispute over oil and gas, as well as the legal preparations made by the Kurdistan Regional Government, under the constitution, to confront the pressures of the federal government and the Federal Ministry of Oil. The meeting stressed the need to solve problems in accordance with the constitution, and reiterated the region's negotiating delegation's readiness to visit Baghdad in this regard.    LINK

Al-Hashd Al-Shaabi Completes The Last Stage Of Securing Iraq's Oldest Oil Routes

Post Views: 35   Baghdad / Obelisk: The leader of the Popular Mobilization, Sadiq al-Husseini, announced on Friday, July 1, 2022, the completion of the last stage of securing Iraq's oldest oil routes.

Al-Husseini said in a press interview that the popular mobilization has completed the last stage of the plan to secure the strategic Naft Khana road, far east of Diyala, which is one of the oldest oil routes in the country and dates back to about 100 years.

Al-Husseini added that the road, which connects Khanaqin with Khana oil fields, extends for tens of kilometers in the middle of winding hills and mountain slopes, and securing it is an important step to prevent any violations and create a stable transportation movement, whether for employees or people.

He pointed out that the road is secured around the clock by the Popular Mobilization detachments after completing all security measures.

The Popular Mobilization supervises the securing of several important land routes in Diyala, some of which have been a hot spot in the security scene for many years.  Obelisk - Follow-up – Agencies   LINK

OPEC Production Is Close To Returning To Pre-Restriction Levels... And Iraq Does Not Have More To Pump

2022-07-01   Yes Iraq: Baghdad   Iraq is close to being outside the scope of developments and raising production in OPEC and is not interested in it, as Iraq has approached the maximum capacity of its oil production and will be unable to raise more production according to the OPEC agreement.

Russian Deputy Prime Minister Alexander Novak said that “OPEC +” decided to increase oil production next August by 648,000 barrels per day, noting that “the next meeting of the “OPEC +” group will be held in early August and the decision to increase production will achieve It balances the oil market and fully supplies consumers with products.

He added, "The decisions taken by (OPEC +) to increase oil production allow us to say that the global oil market will be balanced."

Thus, the “OPEC +” group has decided to increase oil production by 648,000 barrels per day in the month of August, as was scheduled at the group’s previous meeting.

According to the new OPEC agreement, Iraq's production in July rose to 4.580 million barrels per day, an increase of 71 thousand barrels per day from June.

As for in August, Iraq's production share will rise to 4.651 million barrels per day, which is the same level of production as the base year in 2018, on the basis of which the OPEC Plus cuts were made.

Accordingly, it means that Iraq has one month to return production to its normal state according to the maximum capacity, amid expectations that Iraq will not be able to raise its production to this level, and at a rate not exceeding 4.4 million barrels per day, including the production of the Kurdistan region, meaning that the maximum production capacity of Iraq will be equivalent to Less than his available share by about 16%. LINK

Iraq Exported Only 73% Of Its Production Quota For May.. 3 Different Possibilities Behind It

2022-06-30  Yes Iraq: Special    Today, Thursday, the statistics of the Iraqi Oil Marketing Company “SOMO” revealed the quantities exported of crude oil during the month of May. of 1.1 million barrels per day in domestic consumption.

According to Somo's statement, "the final statistics showed that the amount of crude oil exports amounted to 102 million, 303 thousand and 20 barrels, with revenues of 11 billion and 477 million and 496 thousand dollars."

Accordingly, Iraq exported 3.3 million barrels per day, which means exporting only 73% of Iraq's production share according to the OPEC agreement, which in May amounts to 4.461 million barrels per day, which raises questions about whether Iraq has used about 1.1 million barrels per day in domestic consumption. .

And she added, "The total quantities of crude oil exported for the month of May from oil fields in central and southern Iraq amounted to 98,946,914 barrels, while the quantities exported from Kirkuk oil through Ceyhan port were 3,2 million, and 133 barrels."

And she indicated that "the average price per barrel amounted to 112.191 dollars," noting that "additional revenues were achieved from selling quantities of shipments of crude oil exported at a price premium, as the total revenue amounted to 71 million dollars."

She explained that "the exported quantities were loaded by 35 international companies of different nationalities, from the ports of Basra, Khor al-Amaya, mono-buoys on the Gulf, and the Turkish port of Ceyhan."

By comparing oil exports with Iraq’s production quota in May, 3 possibilities are raised, as exporting only 73% of production, it may mean that Iraq did not primarily produce its full share of more than 4.4 million barrels per day, or that it produced it, but its domestic consumption amounted to more than 1.1 million barrels per day, or he produced it, but was unable to export more than 3.3 million barrels per day due to the limited export capacity of Iraq’s ports, which means the accumulation of oil in tanks.   LINK