Iraq Economic News and Points To Ponder Friday Afternoon 9-18-26

Cabinet Reviews Fuel Subsidy, Lawmaker Says

2026-09-17 Shafaq News- Baghdad   Iraq’s Council of Ministers is reviewing recent decisions to remove fuel subsidies for some sectors amid efforts to address fuel shortages across the country, a member of parliament’s Oil, Gas and Natural Resources Committee said on Thursday.

Mohammed Al-Nuaimi told Shafaq News that a delegation from the committee visited the Oil Products Distribution Company to discuss shortages of gasoline and kerosene. “The crisis is on its way to being resolved,” he said.

Al-Nuaimi said the Cabinet’s recent decisions to remove fuel subsidies had caused new supply problems, adding that ministers were considering revising the measures for some sectors.

The Cabinet had decided to remove subsidies on petroleum product prices for various sectors starting Sept. 1, while maintaining subsidized prices for gasoline, diesel, kerosene and liquefied petroleum gas supplied to citizens.

Iraq’s Oil Products Distribution Company said the price increases apply to government institutions and other sectors but not to fuel supplied directly to citizens, which remains available at subsidized prices.

Last week, Diyala Provincial Council member Rashad Al-Tamimi said fuel shortages in the eastern province would be fully resolved this week after weeks of supply problems and long queues at filling stations. He said the council had coordinated with oil product distribution officials to restore supplies across the province.

Iraq faced renewed shortages of gasoline and gasoil, a fuel widely used by heavy vehicles. The Oil Ministry previously attributed the shortages to delayed shipments after the Iran-US conflict disrupted tanker movements, adding pressure to a gap between domestic production and demand. The ministry said new shipments would arrive soon, with daily gasoline consumption at about 33 million liters and rising to around 38 million liters during periods of higher demand.

Read more: Fuel shortages keep Iraqi motorists in long lines

https://www.shafaq.com/en/Economy/Cabinet-reviews-fuel-subsidy-lawmaker-says

USD/IQD Nears 160,000 Amid Speculation

2026-09-17 Shafaq News- Baghdad/ Erbil   The US dollar climbed further against the Iraqi dinar on Thursday, nearing 160,000 dinars per $100 in Baghdad as an economist pointed to uncertainty, speculation and political rhetoric as factors driving demand in the parallel market.

According to a Shafaq News market survey, the dollar closed at 159,500 dinars per $100 at Baghdad’s Al-Kifah and Al-Harithiya exchanges, up from 158,800 dinars in morning trading.

In Baghdad’s exchange shops, the dollar was selling at 160,000 dinars per $100 and buying at 159,000.

In Erbil, the dollar also rose, with exchange shops selling $100 for 159,100 dinars and buying it for 159,050.

Economist Ali Daadoush told Shafaq News that “irresponsible” remarks by some politicians and non-specialists, combined with uncertainty and speculation, were increasing demand for dollars in the parallel market.

He said part of the market’s cash-dollar supply also comes from travelers, travel companies and exchange firms linked to citizens purchasing foreign currency at the official rate for travel, medical treatment, study and other purposes approved by the Central Bank of Iraq (CBI).

Daadoush said that supply had also declined because traders and importers held fewer dollars abroad amid delays in official transfers used to finance imports of goods and services.

The rising exchange rate, he said, could feed into domestic prices because Iraq relies heavily on imported goods, increasing the risk of imported inflation alongside higher customs duties and taxes.

Daadoush said he did not expect CBI to intervene directly in the parallel market, noting that official foreign transfers are conducted through the banking system.

He said the CBI could instead use forward guidance to reassure traders, importers and the wider market about the continued flow of cash dollars through regular shipments.

https://dinarrecaps.squarespace.com/config/pages/5d5227ffceb0a70001072e56

Oil Retreats As Saudi Supply Outlook Improves

2026-09-18 01:10    Shafaq News   Oil prices fell for a third day on Friday as easing concerns over Saudi supply ‌disruptions outweighed anxiety about a widening the Middle East conflict amid fresh fighting between Saudi Arabia and Yemen's Houthis.

Brent crude futures fell 79 cents, or 0.75%, to $104 a barrel by 0319 GMT, while US West Texas Intermediate futures fell 70 cents, or ​0.69%, to $101.20 a barrel. Both benchmarks closed down about 1% on Thursday.

Brent prices are on track for ​their first weekly loss in three, down 0.5%, while WTI is set to gain ⁠1.2%.

Markets largely shrugged off concerns about new threats to supplies even as Saudi Arabia and Yemen's Iran-backed ​Houthis exchanged fresh strikes across their border on Thursday, expanding the Middle East war front.

Earlier this week, prices climbed to close to ​four-month highs as sources said crude loadings at Saudi Arabia's Red Sea export hub of Yanbu had been suspended and Riyadh cancelled some deliveries to Europe after its East-West pipeline was damaged in an attack last week.

However, prices have cooled off ​on reports Saudi Arabia was seeking to return about half the capacity of its East-West oil pipeline within ​days and the nation was offering more crude cargoes to Asian refiners through ship-to-ship transfers off Oman's port of Sohar.

"Recent ‌efforts to ⁠restore Saudi export capacity have reduced some of the immediate supply anxiety," said Priyanka Sachdeva, head of market insights at Phillip Nova.

Sources that have spoken to Reuters have given varying estimates of how long it will take to reopen the pipeline and return crude flows to normal.

Oil prices, however, are still up over $100 per barrel ​as the markets are waiting ​for evidence of a ⁠clear supply improvement, analysts said.

"The key question is whether physical flows can normalise and what could be the timeline. If we see a sustained improvement in Hormuz ​traffic, some of the geopolitical premium can unwind further," Sachdeva said.

However, transporting oil ​through the region ⁠remains risky.

Iran's Revolutionary Guards Navy said a Togo-flagged oil tanker was struck while attempting to make an "illegal passage" through the Strait of Hormuz on Thursday, Iranian state media said early on Friday.

The US and Iran have held no ⁠peace talks ​since an interim agreement reached in June collapsed within weeks. The ​war will come up for discussion at the United Nations General Assembly next week, and an Iranian delegation will be able to ​attend, according to the US State Department. (REUTERS)

https://www.shafaq.com/en/Economy/Oil-retreats-as-Saudi-supply-outlook-improves