Iraq Economic News and Points to Ponder Monday Afternoon  9-25-23

Tlm724 Administrator Bondlady’s Corner

JP Morgan Expects Oil Prices To Rise To $150

Energy   Economy News – Baghdad   Giant investment bank JPMorgan (NYSE:JPM) reported that the price of Brent crude oil futures is likely to continue rising to $150 per barrel during 2025, supported by the OPEC Plus alliance’s crude oil cuts led by Saudi Arabia and Russia.

This may be offset by a strong increase in demand for oil, which will eventually boost crude prices. It also seems likely that the oil market may witness severe shocks on both the supply and demand sides that could potentially result in a rise in crude oil prices.

US Bank experts reported that the recent moves taking place in the energy market to reduce dependence on fossil fuels, which will have an impact in enhancing the lack of investment in new crude oil production operations.

In the current year 2023, JP Morgan analysts expect that the price of Brent will range between $90 and $110, and then oil will reach higher levels in 2025. Supported by the global imbalance between supply and demand for crude oil at 1.1 million barrels per day for 2025.

Views 42  /2023 - 2:12 PM   https://economy-news.net/content.php?id=36613

Experts: Iraq Faces An Opportunity To Diversify Oil Export Trends

Energy   Economy News _ Baghdad   Experts in energy and economic affairs have suggested that Iraq will occupy a large space in global oil markets, especially European ones, as a result of the decline in Russian supplies to the “Old Continent,” highlighting the geopolitical and economic importance of oil alike, as oil exerts a major strategic influence and role in political and economic security. Social and military issues for exporting and importing countries, stressing the possibility that black gold prices will continue to rise during the coming periods as a result of declining supplies and the onset of winter.

In support of the expectations expressed by many specialists regarding the continued rise in oil prices in the coming periods, JPMorgan International Bank believes that the currently high oil prices have the potential to increase further in the coming period, and that Brent crude oil may rise to $150 per barrel.

In the midst of this, member of the Parliamentary Oil, Gas and Natural Resources Committee, Zainab Al-Moussawi, explained that directing foreign direct investment towards the oil sector leads, as a result, to increasing financial resources and enhancing the state’s public revenues, which reflects positively on the economic development process.

Al-Moussawi said in a press statement seen by Al-Iqtisad News, “The Sudanese’s recent visit to New York included important and very positive meetings with the heads of several countries, including major countries in the field of oil and gas, which resulted in their invitation to invest in the oil sector, as they expressed a high desire. "This indicates noticeable progress recorded by the Iraqi government."

Al-Mousawi added, “The research hypothesis stems from foreign investment directed toward important economic sectors, as this leads to the development of those sectors, and that directing foreign direct investment toward the oil sector leads, as a result, to increasing financial resources and enhancing the state’s public revenues, which reflects positively on the process of economic development and restoration.” Reconstruction in Iraq.

The financial advisor to the Prime Minister, Mazhar Muhammad Saleh, confirmed that the acceptable average oil price indicated by Prime Minister Muhammad Shiaa Al-Sudani, between 85 and 95 dollars, would reduce the financial deficit and achieve sufficient balance and guarantees for spending on development and reconstruction projects, indicating that it is a vision. Iraq to bring balance and stability to the global economy.

Saleh explained that “the average price of a barrel of oil, which is about 15 to 20 dollars higher than what is in the general budget, will reduce the planned fiscal deficit.”

In turn, researcher and academic Dr. Abdul Karim Al-Issawi says that Iraqi oil has a large and important role in the global market. Oil is no longer the material that is marketed like all other materials or only a financial and economic resource, but rather oil has become an influence and a major strategic role in political, economic and social security.

 And the military for exporting and importing countries, whether in peacetime or war, pointing out at the same time that most of Iraqi oil exports are heading to three markets: Asian, European, and American, at a rate of 64 percent, 27 percent, and 6 percent, respectively, for the year 2021.

Al-Issawi explained, “Iraq prefers to export its oil to Asian countries in order to maximize its revenues because insurance and transportation costs are borne by the buyer, and thus these costs do not appear in the pricing equation for oil exported to Asia. On the one hand, Iraq bears part of the insurance and transportation costs when it exports to Asia.” European markets reach about $3, and $3.3 per barrel for the American market due to the long distance, in addition to the traffic fees imposed on oil tankers that pass through water canals.”

Al-Issawi pointed out that “the Russian-Ukrainian war and the American-European economic sanctions imposed on Moscow changed the map of global trade in general and energy in particular, especially Russian trade, which subsequently redirected many shipments towards Asia via the Mediterranean and the Suez Canal.”

Al-Issawi also pointed out that “China and India are the main traditional partners for Iraqi oil exports, but according to what was reported by one of the international companies, Russian oil exports transported by sea to India and China have grown very significantly since the beginning of 2022, and have risen to record levels within one year of 704 thousand barrels per day to about 1,258 thousand barrels, and therefore Iraqi oil exports to India and China have witnessed real competition with Russian oil exports, especially after Russia made offers and discounts to buyers of its crude oil exports,” pointing out that “these speculations were confirmed by Iraqi oil exports.” To India, which recorded its lowest level in 20 months during October 2022, a decrease of 6.9 percent compared to the previous year.

For his part, economic researcher Mustafa Al-Jayashi says that it is possible for Iraq to exploit the situation to its advantage. Iraqi crude oil may be an alternative to Russian crude oil in Europe if appropriate conditions exist.

Al-Jayashi stated that the countries of the Old Continent are facing a cold winter, in addition to being suffering from a large deficit in their energy balance. In 2021, the total production of crude oil in Europe reached about 527.13 million barrels per day, meaning that it imported more than 10 million barrels. daily to meet its needs, and it relies on Russian crude oil to meet 28 percent of this need.

Views 75  09/25/2023    https://economy-news.net/content.php?id=36595

Oil Prices Rise...And Brent Exceeds $93 Per Barrel

Economy  Monday, September 25, 2023 Baghdad/National News Center

Oil prices rose on Monday, with investors focusing on expectations of supply shortages after Moscow issued a temporary ban on fuel exports amid continuing concerns that another interest rate hike could weaken demand.

Brent crude futures rose 48 cents, or 0.5 percent, to $93.75 a barrel by 0110 GMT, after falling three cents upon settlement on Friday.

US West Texas Intermediate crude futures continued their gains for the second session in a row, trading at $90.53 per barrel, up 50 cents, or 0.6 percent.    https://nnciraq.com/228403/

The Rise In Dollar Prices In Baghdad Markets

Time: 09/25/2023 11:20:17 Read: 3,263 times   {Economic: Al-Furat News} Dollar prices rose on Monday in Baghdad markets   The prices were as follows..   The selling price was 155,500 Iraqi dinars, while the purchase amounted to 153,500 dinars per 100 dollars.   LINK

The Central Bank Sells More Than $198 Million In Currency Auction

Economy News – Baghdad   Today, Monday, the Central Bank of Iraq’s sales in the foreign currency sales window amounted to more than 198.5 million dollars.

The Central Bank’s website published its dollar sales schedule, which Al-Iqtisad News reviewed. It included the participation of 28 banks and 49 exchange companies, and foreign transfer requests covered $178.5 million, while cash requests amounted to more than $20 million.

The Central Bank of Iraq sells the dollar for documentary credits and international settlements for electronic cards at a price of 1,305 dinars per dollar, for every dollar for documentary credits and international settlements for electronic cards, at a price of 1,310 dinars per dollar for external transfers, and at a price of 1,310 dinars per dollar in cash.

115 views 09/25/2023 - https://economy-news.net/content.php?id=36603

A Representative Demands To Host The Sudanese Regarding The Governor Of The Central Bank

Iraq   Monday, September 25, 2023 2:38 PM   Baghdad/National News Center   Today, Monday, Member of Parliament Hadi Al-Salami submitted a request to host the Prime Minister in Parliament, to explain the reasons for not completing the assignment of the Governor of the Central Bank and not controlling the rise in the exchange rates of the dollar against the Iraqi dinar in the parallel market    https://nnciraq.com/228527/

Parliamentary Investment: The Path Of Development Will Enhance Economic Growth In Basra

Time: 09/25/2023 17:11:04 Read: 481 times   {Local: Al-Furat News} The Parliamentary Investment Committee confirmed, today, Monday, that the development path will enhance economic growth in Basra Governorate.

Committee member Asaad Al-Bazuni said {to Al-Furat News} that: “The large Al-Faw port project has great strategic importance in the region, in addition to the fact that establishing the development road and working on it will contribute to creating great job opportunities.”

He added, "This road will also enhance economic growth in Iraq in general and Basra in particular."

Al-Bazuni continued, "This road will bring economic growth and a very positive social situation to Basra."

Prime Minister Muhammad Shiaa Al-Sudani said in a speech he delivered during the meetings of the United Nations General Assembly in its 78th session, that the development road project is “the pioneering and most modern project in the region, and it is the vital land channel linking basic economic parts in our developing region,” stressing that “ “The most appropriate and best path for trade and economic exchange in the region.”

Al-Sudani stressed that “in the field of transportation and economics, it has come to represent a strategic Iraqi vision for interconnection and communication with the world, and positive economic interaction.”

Yesterday, Sunday, Minister of Transport Razzaq Muhaibes Al-Saadawi announced the completion of preliminary designs of the second section of the development road project next October.   LINK

Planning: The Central Bureau Of Statistics Begins Implementing The Financial Inclusion Survey For Transportation And Communications Companies In The Private Sector

Monday 25, September 2023  Economical Number of readings: 252  Baghdad / NINA / The Ministry of Planning announced, today, Monday, that the Central Bureau of Statistics has begun implementing a financial inclusion survey for transportation and communications companies in the private sector in all governorates, including the governorates of the Kurdistan region, which is the first of its kind in Iraq.

The Ministry explained in a statement: The survey will provide data that serves the various activities that contribute to calculating the gross domestic product and provide data on financial and banking services, loans, credit, savings, and insurance, which contribute significantly to achieving comprehensive economic development, improving living standards, providing job opportunities, promoting equal opportunities, and financing projects. Small and medium-sized enterprises, which ensure comprehensive and sustainable economic growth./End 8    https://ninanews.com/Website/News/Details?key=1079658

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 Points to Ponder Brainstorming:

#1 -- If you could have one item that you own and it never break - never wear out - or get lost what would you choose?

#2 -- What is the best gift you've ever received?

#3 -- To the best of your recollection - what would you say is the nicest thing you've ever done for your parents? What would be the nicest thing they have done for you?

#4 -- What is the nicest thing you have ever done for a friend or an unknown person or group?