Saturday AM Iraq Economy News Highlights 5-28-22
Saturday AM Iraq Economy News Highlights 5-28-22
Oil Achieves High Gains And Approaches $120 A Barrel
Economie| 12:13 - 28/05/2022 Baghdad - Mawazine News: Oil prices rose in Friday's session, to conclude the week with gains before the Memorial Day weekend in the United States, the beginning of the peak demand season in the United States, while European countries are negotiating whether to impose a complete ban on Russian crude oil.
Brent crude rose $2.03, or 1.7%, to settle at $119.43. US West Texas Intermediate crude also rose 98 cents, or 0.9%, to $115.07 a barrel upon settlement. Over the course of the week, Brent rose 6%, while WTI rose 1.5%.
And prices were supported by strong global demand for fuel, as futures contracts for gasoline and heating oil outperformed crude oil prices this year.
Meanwhile, officials said, European Union countries are negotiating an agreement on oil sanctions against Russia that would block deliveries but delay sanctions on pipeline-delivered oil to persuade Hungary and other landlocked member states to join the embargo.
Hungary's rejection of oil sanctions and the reluctance of other countries to accept them is hindering the implementation of a sixth package of EU-27 sanctions against Russia following its invasion of Ukraine.
Officials said EU government envoys could reach a deal in Brussels on Sunday in time for leaders to endorse it at their May 30-31 summit.
Russian President Vladimir Putin informed Austrian Chancellor Karl Nehamer that Moscow will fulfill its obligations to deliver natural gas. https://www.mawazin.net/Details.aspx?jimare=194662
The Stability Of The Dollar Exchange Rates On The Iraqi Local Stock Exchange
Economie| 09:46 - 28/05/2022 Baghdad - Mawazine News The dollar prices witnessed, today, Saturday, stability in local markets throughout the country,
and the selling prices of the dollar recorded, 148.750 dinars per 100 dollars, while the purchase prices of the dollar recorded 147.750 dinars per 100 dollars. https://www.mawazin.net/Details.aspx?jimare=194638
Oil Reveals Planned Production Capacities For The Next Six Years
Economie| 11:11 - 27/05/2022 Baghdad - Mawazine News Oil Minister Ihsan Abdul-Jabbar revealed, on Friday, the planned production capacities of crude during the period from 2022 to 2028, which aims to reach 8 million barrels per day, this came during a meeting he held with officials in the French Ministries of Energy and Economy.
Abdul-Jabbar said, in a statement received by Mawazine News, that the meeting included a discussion of Iraq's potential capabilities in gas production after the completion and completion of plans to develop free gas fields in the governorates of Anbar and Diyala, in addition to investing gas associated with oil operations, and the possibility of Enhancing these quantities produced for international energy security.
The Minister of Oil referred to the role that Iraq plays in OPEC Plus as the second producer in OPEC and works with producers to achieve balance and stability. What is required in global markets, praising the development of bilateral relations with France in a way that serves common interests.
The meeting was attended by the delegation accompanying the Minister of Oil and the French ambassador in Baghdad, and a number of officials from the French Ministries of Energy and Economy. Ended 29/R77 https://www.mawazin.net/Details.aspx?jimare=194620
Kurdistan Energy Committee: Neighboring Countries Opposed The Oil And Gas Law As It Threatens Their Interests
Political | 12:46 - 28/05/2022 Baghdad - Mawazine News, Deputy Chairman of the Energy and Natural Resources Committee in the Parliament of the Kurdistan Region, Collizar Rashid Sindi, confirmed today, Saturday, that some neighboring countries opposed the oil and gas law approved by the region, as it threatens its political and economic interests.
Sindi said in a statement that Mawazine News received a copy of it, that "Baghdad wants to deal with the region with the mentality of central government away from constitutional constants, and this matter is due to the fact that Iraq's decisions come from outside the borders, so that the matter became stripping the center's dealings with the region from constitutional and national dimensions." ".
The statement added, "The oil and gas law in the region seems to have become a source of threat to the economic and political interests of some neighboring countries, which do not want the best for it and for Iraq, which prompted them to stand against this law through influential parties in the federal authorities that follow the policies of these countries." ".
And he indicated that "the regional government has been dealing from the beginning with the federal government on a constitutional basis in order to solve all the outstanding problems between the two parties, including the legislation of the Federal Oil and Gas Law, but the procrastination practiced by the federal government because of some of the ruling political parties prevented this, stressing that the parties Politicians,
if they have the pure national will, can easily agree with the Kurdish political parties in the House of Representatives to come up with a final version of the law in accordance with the provisions of the constitution, in which the rights of the Iraqi people from oil wealth are taken into account, as it is their property as stipulated in Article 112 of the constitution.
The statement continued, "The oil and gas law is still in effect in the region, and all authorities are bound by it, in addition to those that deal with the Ministry of Natural Resources, such as oil companies, noting that if the issue of the Federal Oil Law is settled in accordance with the constitutional mechanisms, the existence of an oil law in the region will be necessary, considering The region's oil dealings with international bodies has become a realistic and legal reality."
He pointed out that "the Iraqi constitution gave the region the right to issue a law that is not related to the exclusive powers in the article in Article 110 contained in the constitution and in accordance with Article 112 of the existence of the oil and gas law in the region to be side by side with the federal law if they are in agreement with the constitution and the rights of the region are taken into account in The unilateral law, because the law of the region did not bring anything new and outside the framework of the constitution, and that oil issues are not among the exclusive powers stipulated in Article 110 of the constitution, so there is no problem in the existence of an oil law in the region in this case. https://www.mawazin.net/Details.aspx?jimare=194667
Important Files On The Table Of The Minister Of Oil’s Talks With French Energy And Economy.. Get To Know Them
27/05/2022 Earth News/ Minister of Oil, Ihsan Abdul-Jabbar Ismail, revealed today, Friday, the planned production capacities of crude oil during the period from 2022 to 2028, which aims to reach 8 million barrels per day. A statement by his media office, interviewed by Earth News, stated that "this came during a meeting he held with officials in the French Ministries of Energy and Economy, and the meeting was attended by the delegation accompanying the Minister of Oil and the French ambassador in Baghdad, and a number of officials in the French Ministries of Energy and Economy."
The minister said, according to the statement: "The meeting included a discussion of Iraq's potential capabilities in gas production after the completion and completion of plans to develop free gas fields in the governorates of Anbar and Diyala, in addition to investing gas associated with oil operations, and the possibility of enhancing these quantities produced for energy security." International”.
The Minister of Oil referred to “the role that Iraq plays in OPEC Plus, as the second producer in OPEC, and it works with producers to achieve balance and stability. What is required in global markets, praising the development of bilateral relations with France in a way that serves common interests.
It is reported that the Minister of Oil, accompanied by a high-level delegation, is holding talks in France in order to strengthen relations and cooperation, and to attract investments in the oil, gas and clean energy sectors. https://earthiq.news/archives/89508
Kurdistan Parliament: Our Oil Dealings With The World Are Legal And Neighboring Countries Stand Against It
Shafaq News/ The Deputy Chairman of the Energy and Natural Resources Committee in the Parliament of Kurdistan Region, Collizar Rashid Sindi, confirmed on Saturday that some neighboring countries opposed the oil and gas law approved by the region as it threatens their political and economic interests.
Sindi said, in a statement received by Shafaq News Agency, that "Baghdad wants to deal with the region with the mentality of central government, away from constitutional constants, and this matter is due to the fact that Iraq's decisions come from outside the borders, so that the matter became stripping the center's dealings with the region from constitutional and national dimensions." .
She added that "the oil and gas law in the region has become a source of threat to the economic and political interests of some neighboring countries, which do not want good for him and Iraq, which prompted them to stand against this law through influential parties in the federal authorities that follow the policies of these countries."
Sindi explained, "The regional government has been dealing from the beginning with the federal government on a constitutional basis in order to resolve all outstanding problems between the two parties, including the legislation of the Federal Oil and Gas Law, but the procrastination practiced by the federal government due to some ruling political parties, prevented this." .
And she stressed that "the political parties, if they have the pure national will, it can easily agree with the Kurdish political parties in the House of Representatives to come up with a final version of the law in accordance with the provisions of the Constitution so as to take into account the rights of the Iraqi people from the oil wealth as it belongs to them as stipulated in Article 112 of the Constitution".
And she added, "The oil and gas law is still in effect in the region, and all authorities are bound by it, in addition to those that deal with the Ministry of Natural Resources such as oil companies," adding: "If the issue of the Federal Oil Law is settled in accordance with the constitutional mechanisms, the existence of an oil law in The region will be necessary, given that the region's oil dealings with international bodies has become a realistic and legal reality.
The Vice-Chairman of the Energy and Natural Resources Committee of the Kurdistan Regional Parliament indicated that "the Iraqi constitution gave the region the right to issue a law that is not related to the exclusive powers in Article 110, and according to Article 112 of it, there is an oil and gas law in the region to be side by side with the federal law."
Sindi concluded, "The law of the region did not bring anything new and outside the framework of the constitution, and that oil issues are not among the exclusive powers stipulated in Article 110 of the Constitution, so there is no problem in the existence of an oil law in Kurdistan, in this case." LINK
What Are Iraq's Plans To Invest The Financial Surplus From Oil Sales?
Saturday, 05-28-2022,Pm 2:17 Tayseer Al-Assadi Iraqi Finance Minister Ali Abdul-Amir Allawi confirmed that the compass of the Iraqi economy is heading towards development with deliberate steps, after oil sales achieved a financial surplus, and indicated that, "Iraq will have a surplus of the difference in selling oil in the range of 20 billion dollars."
Allawi stressed that, "in light of the current financial abundance, it is unlikely to resort to borrowing," according to the Iraqi News Agency, "conscious."
Economists stressed that Iraq needs to invest the financial surplus in the completion of large development projects, but with a delay in approving the budget for 2022, the investment of this money remains suspended.
The financial advisor to the Prime Minister, Mazhar Muhammad Salih, said: "The important investment accelerators are linked to the budget law for the year 2022, through the new investment spending doors and new investment programs, and not by spending 1/12 of the actual current expenditures in the year 2021," according to the agency.
He continued, "The average oil revenue for the year 2022 will increase by no less than 60% of the revenues of oil exports for the year 2021, which means that there will be a large financial reserve available to the state at the end of the year that may exceed 40 billion dollars," noting that "Iraq has been placed at the forefront His priorities, which seek to enter the prospects of development and accelerated development, are to transcend the stage of the rentier economy or the mono-economy, as crude oil still constitutes the largest weight in the components of the gross domestic product.
Saleh explained that "the five-year and ten-year economic and social development plans are the ones that determine the sectoral and overall growth rates in order to bring about a fundamental change in the contribution of the vital productive sectors other than the crude oil sector to the gross domestic product, which is what is called diversifying the production structure of the overall economy."
He added, "It is expected that the continued recovery of oil prices will increase these reserves to more than 90 billion dollars by the end of 2022, which is a record level for Iraq," noting that "the depreciation of the Iraqi dinar against the US dollar in December 2020 contributed to the decline in demand." On the US dollar, while the current demand for the dollar is higher than the declines seen in 2020, it is much lower than the period before 2020.”
He pointed out that "the continuation of the Ministry of Finance's sales in US dollars reflects the increase in oil revenues, and the increase in the government's provision of goods and services to citizens," stressing that "the increase in the Ministry of Finance's sales of US dollars in exchange for a decrease in the demand for the dollar will lead to an increase in foreign currency reserves with the Central Bank."
For his part, the economic expert, Nabil Jaafar, said: "There is a new wave of rising crude oil prices, and it is possible to invest this to break the financial constraint that prevents real economic development, and invest large sums that can be allocated to activate the investment side and establish some strategic projects that generate goods and services. affecting the achievement of a qualitative leap for the Iraqi economy,” according to the agency.
He pointed out, "The importance of working to establish a sovereign fund and a financial and economic buffer, because the rise in oil prices will not continue, and we will face in the coming years factors of a decline in prices, so this fund is important to maintain to ensure the future for future generations."