Iraq Economic News and Points to Ponder Thursday Afternoon 3-26-25
Mr. Al-Hakim Assures The US Chargé d'Affaires: Iraq Is Capable Of Confronting All Security Challenges.
Time: 2025/03/27 Reading: 660 times {Political: Al Furat News} The head of the National State Forces Alliance, Mr. Ammar al-Hakim, discussed with the Chargé d'Affaires of the United States Embassy in Baghdad, Daniel Rubinstein, developments in the local and regional situation and affairs in the region.
During the meeting, according to a statement from his office, a copy of which was received by {Euphrates News}, Mr. Al-Hakim expressed "his concern over the renewed aggression of the Israeli entity on Gaza, and we renewed our call to strengthen security and peace through dialogue and the prevalence of logic, while avoiding wars and their dangerous repercussions."
He stressed that "Iraq has pioneering experience in combating terrorism and is capable of confronting all security challenges. We also emphasized the importance of strengthening bilateral relations between the two countries in a way that serves the interests of both parties and preserves Iraq's sovereignty and independent decision-making."
Mr. Al-Hakim also pointed to the promising opportunities Iraq possesses in all fields, and we called on American companies to invest in these opportunities to enhance the partnership between the two countries, support the Iraqi economy, and contribute to the exchange of expertise. We affirmed Iraq's keenness to develop its relations with the international community and its openness to it. LINK
Al-Sudani's Advisor: Iraq's Revenues Are Stable Despite Global Challenges
Money and Business Economy News – Baghdad The Prime Minister's Advisor for Financial Affairs, Mazhar Mohammed Salih, stated that global geopolitical fluctuations represent a complex factor that directly impacts energy markets, indicating that Iraq's public finances are hedged against price fluctuations in the oil market.
In an interview with the official newspaper, followed by Al-Eqtisad News, Saleh indicated that even the end of the Russian-Ukrainian war will not necessarily mean market stability. Rather, it will lead to what are called "peace economies," which focus on rebuilding damaged economies and increasing investment to compensate for lost opportunities.
He explained that "this phase will not lead to an economic recession, but rather to a recovery in global growth rates, which in turn will lead to increased demand for oil." He explained that "a 1% increase in global growth leads to a 0.5% increase in oil demand, which supports the stability of oil prices and reduces the downward trajectory of the oil asset cycle," expecting prices to return to "rise under the pressure of increased demand for energy."
Saleh added, "Even the United States, the world's leading crude oil producer, faces significant losses if oil prices fall below $70 per barrel, due to the high cost of shale oil production. As for Russia, the world's second-largest oil producer, it is not in its interest to sell its oil at low prices or at discounts that exceed international agreements within OPEC, especially if the Ukrainian war ends." Regarding Iraq's financial situation,
Saleh affirmed that "public finances are resilient to oil market fluctuations," noting that "the first quarter of 2025 is about to end without any financial disruptions, as fiscal policy continues to operate with high discipline to ensure the implementation of budget objectives, including securing salaries, pensions, and social welfare, in addition to continuing to implement service projects in accordance with the government program."
He pointed out that "the three-year federal budget law, issued pursuant to Law No. 13 of 2023, priced oil at approximately $70 per barrel, ensuring stable public revenues despite global economic challenges." https://economy-news.net/content.php?id=53847
Oil Prices Stabilize After A Huge Drop In US Inventories
Energy Economy News – Baghdad Oil prices held steady on Thursday after U.S. crude inventories recorded their largest decline since December 2024, suggesting a potential supply shortage in the near term.
Brent crude was trading near $74 a barrel, after closing up 1.1% on Wednesday, while West Texas Intermediate fell below $70 a barrel.
US crude inventories fell by 3.34 million barrels last week, reaching their lowest level in a month, and gasoline inventories also declined, according to government data.
Oil prices have been rising since early March, as sanctions and tariffs imposed by US President Donald Trump have increased the likelihood of supply disruptions from producers such as Iran and Venezuela.
However, major oil trading companies, including Trafigura Group and Gunvor, remain pessimistic about crude oil prices for the remainder of the year, given the high supply, particularly from outside the OPEC+ alliance.
The alliance is also scheduled to begin restoring some of its shutdown production next month, the first in a series of planned increases. This has prompted traders to buy bullish oil options to hedge against higher prices. https://economy-news.net/content.php?id=53844
Iraq's Oil Exports Exceed 95 Million Barrels In February
Energy Economy News – Baghdad The Ministry of Oil announced today, Thursday, the total oil exports achieved for the month of February, which exceeded 95 million barrels of crude oil, according to statistics issued by the State Oil Marketing Organization (SOMO).
The Ministry stated in a statement received by “Al-Eqtisad News” that the total exports of crude oil amounted to (95) million, (148) thousand, and (167) barrels.
The statistics also indicated that the total quantities of crude oil exported for the month of February from the oil fields in central and southern Iraq amounted to (94) million and (375) thousand and (12) barrels.
The Ministry said, based on SOMO, that exports to Jordan amounted to (419) thousand and (846) barrels, and the quantities exported from the Qayyarah field amounted to (353) thousand and (309) barrels.
Thus, Iraq's oil exports declined by approximately 8 million barrels of crude oil in February, compared to January, when exports exceeded 103 million barrels of oil, according to SOMO statistics https://economy-news.net/content.php?id=53853
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