Iraq Economic News and Points to Ponder Tuesday Afternoon 1-21-25
Iraq Looks To Strengthen Ties With New US Administration
January 21, 2025 Baghdad - Qusay Munther President of the Republic Abdul Latif Jamal Rashid congratulated his American counterpart Donald Trump on the occasion of his swearing-in as President of the United States of America.
Rashid said in a tweet on the X platform yesterday (We congratulate Trump on the occasion of his swearing-in as President of the United States of America, wishing him success in his work duties), stressing (Iraq's support for establishing security and stability in the region and the world, and strengthening bilateral relations between our two friendly countries in a way that achieves the common interests of the two peoples).
Prime Minister Mohammed Shia al-Sudani sent a congratulatory telegram to Trump on the occasion of his assumption of his duties as President of the United States.
A statement received by (Al-Zaman) yesterday said (The congratulatory telegram included Al-Sudani's affirmation of Iraq's aspiration to strengthen the bonds of cooperation and partnership with the United States, within the framework of the strategic agreement and the common interests of the two countries), pointing out (the importance of working to support the foundations of stability, security and development regionally and internationally).
In a development, Al-Sudani stressed the Iraqi government's adherence to strategic relations with the United States, and its efforts to activate and expand the scope of implementing all bilateral memoranda of understanding, and bilateral security and economic coordination, under the umbrella of respecting sovereignty, and non-interference in internal affairs.
Al-Sudani said that (Washington is a major partner of Iraq, and the government is working to build a stable institutional relationship with it), and pointed out that (the government is determined to build a new Iraq based on its cultural heritage), and went on to say that (Iraq plays a pivotal role as an effective mediator between various regional parties, and Baghdad has become a center for calm dialogue aimed at bridging the gap between the parties), and pointed out that (Riyadh is a key partner in Iraq's economic equation, and that the electrical connection with Saudi Arabia is not just a technical project, but a step towards achieving long-term economic integration).
In addition, the World Health Organization expressed its regret over the decision of the new US President's administration to announce Washington's withdrawal from the UN agency.
WHO spokesman Tarik Jasarevic said in a statement yesterday that “the international body regrets the announcement by the United States of America that it intends to withdraw from the organization,” adding, “We hope that the United States will reconsider its position and engage in a constructive dialogue for the health and well-being of millions of people around the world, hoping for a constructive dialogue with the US authorities. ”
For its part, the European Commission expressed its concerns about Trump’s decision to withdraw from the World Health Organization, warning that the move could undermine the response to any future epidemics.
Commission spokeswoman Eva Herncirova said in a statement yesterday, “If we want to withstand global health threats, we must have global cooperation,” adding, “We are confident that the US administration will think about all these matters before the official withdrawal.”
Trump began his rule by signing a series of executive orders that he described as historic, confirming that the golden age of the United States had begun. The decisions included (declaring a state of emergency on the southern border with Mexico, sending US troops to stop illegal immigration, and imposing tariffs on foreign countries to boost the US economy.
The decisions also included restoring the Panama Canal, withdrawing from the Paris climate agreement, and focusing efforts on exploring Mars and developing energy. Trump is expected to issue about 100 executive orders on his first day, opening the door to a new phase of American politics. LINK
Economist: US Oil Exports Will Increase Crude Prices And Economic Challenges For Iraq
Time: 2025/01/21 Read: 1,417 times Economic: Al Furat News} Economic expert, Rashid Al Saadi, warned of the repercussions of the United States of America exporting quantities of its oil energy and its impact on the Iraqi economy.
Al-Saadi told {Euphrates News} that: "This move will lead to a reduction in the quantities offered in the global market, which will raise prices as a result of the decrease in supply versus demand, and will also strengthen the economic relationship between supply and demand, as the decrease in supply will lead to an increase in oil prices, which will directly affect Iraq and the global oil market."
Al-Saadi added that "this change will lead to the United States dispensing with oil imports, which will reduce global dependence on imported oil," explaining that "these shifts in the market will have a major impact on oil prices, which may cause a decrease in the revenues of oil countries, including Iraq."
He pointed out that "the Iraqi government must begin to seriously consider finding alternative resources other than oil, given the Iraqi economy's great dependence on oil revenues."
The economic expert stressed that "the steps taken towards diversifying oil revenues were not as required, which makes it necessary to accelerate these efforts to confront future economic challenges that may be exacerbated by these changes in the global oil market."
Prices swung between gains and losses as traders digested a series of pledges and executive orders from President Donald Trump, including a threat to impose tariffs on Canada and plans to boost domestic energy production.
Brent crude traded above $80 a barrel after three days of losses, while West Texas Intermediate crude approached $77.
Trump has said he could impose tariffs of up to 25% on crude producers Canada and Mexico by early next month and signed an order declaring a national energy emergency.
However, Trump declined to unveil the China tariffs on his first day in office, instead ordering his administration to address unfair trade practices globally, according to a White House fact sheet seen by Bloomberg. LINK
Oil Prices Fall On US Oil Production Increase Plan
Energy Economy News – Baghdad Oil prices fell in Asian trading on Tuesday after President Donald Trump announced a plan to boost U.S. oil and gas production and held off on new tariffs.
Brent crude futures were down 11 cents, or 0.14 percent, at $80.04 a barrel by 01:56 GMT.
The most widely traded West Texas Intermediate crude futures contract for March fell about 67 cents to $76.72 a barrel from Friday's close.
US President Donald Trump announced a plan to boost US oil and gas production and said he was considering imposing 25% tariffs on imports from Canada and Mexico starting February 1 rather than immediately, which helped push oil prices lower.
But ultimately, tariffs on Canadian crude could send the market higher.
Almost all of Canada's oil exports go to the United States and are typically sold at a discount to West Texas Intermediate crude.
Trump has laid out a comprehensive plan to speed up the issuance of oil, gas and power permits in order to maximize U.S. energy production, which has already reached record levels.
Although he did not immediately impose any sweeping new trade measures, he did order federal agencies to investigate unfair trade practices by other countries.
Trump also said the United States "may" stop buying oil from Venezuela.
Trump also promised to replenish strategic reserves, a move that would boost oil prices by boosting demand for U.S. crude. https://economy-news.net/content.php?id=52144
60% For Only Two Countries.. Iraqi Oil Exports Rise In 2024
01/21/2025 Mawazine News – Economy Iraqi oil exports in 2024 witnessed a significant increase, with an increase of 90 thousand barrels per day compared to 2023, according to a report issued by the Energy Research Unit.
Exports averaged 3.64 million barrels per day during the year, with China and India accounting for about 59.6% of global shipments.
Key points about Iraqi oil exports in 2024:
1. Annual increase in exports:
- Average exports: 3.64 million barrels per day (compared to 3.55 million barrels per day in 2023).
- Highest quarterly rate: 3.69 million barrels per day in the third quarter.
- Lowest quarterly rate: 3.54 million barrels per day in the fourth quarter due to compensating for excess production.
2. Production reduction measures:
- Iraq's commitment to a voluntary production cut of 211 thousand barrels per day since May 2023, in addition to an additional voluntary cut in 2024 of 220 thousand barrels per day with the OPEC+ alliance.
- These cuts extend until the end of 2026, with volumes gradually being reintroduced from March 2025.
3. Top importers:
- China: 1.19 million bpd (up from 1.09 million bpd in 2023).
- India: 979,000 bpd (up from 945,000 bpd).
- South Korea: 328,000 bpd.
- UAE: 287,000 bpd (up significantly due to Ruwais refinery expansion).
- US: 242,000 bpd (down from 251,000 bpd).
4. Monthly performance:
- Highest monthly export rate: 3.86 million bpd in July.
- Lowest monthly export rate: 3.48 million bpd in October.
Reasons for shifts in import markets:
- China and India: Continued strong demand due to refinery expansions and increased energy needs.
- UAE: Preferring to import Iraqi oil to operate the new Ruwais refinery instead of exporting Murban crude to achieve higher returns.
- USA: Demand has declined due to the availability of local supplies and alternative sources.
These figures demonstrate Iraq’s role as one of the largest exporters in the global oil market, while maintaining flexibility in the face of market fluctuations and production policies.
The positive performance of exports is expected to continue with a balance between meeting global demand and adhering to production cut plans within the OPEC+ alliance. https://www.mawazin.net/Details.aspx?jimare=258843
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