Saturday Evening Iraq Economic News Highlights 7-23-22

The Captain of Accountants warns of a (disaster) due to the failure to pass the budget

political| 11:08 - 23/07/2022   Baghdad - Mawazine News: Jawad al-Shahili, the head of the Accountants and Auditors Syndicate, warned, on Saturday, of a "disaster" due to "negligence" of voting on the 2022 budget law

. Neglecting to legislate the 2022 budget law,” referring to “a major failure of stakeholders and the government in the parliament’s inability to legislate important laws.”  He added, "The absence of a budget this year will cast a negative shadow on the poor citizen," warning of the existence of a real crisis that is accumulating and may generate a disaster,

and that "the vote on the Food Security Law is one of the solutions to the absence of a strategic budget, but it is not a final solution, as the country needs to a larger solution that includes voting on the 2022 budget law.” Ended 29/N33    https://www.mawazin.net/Details.aspx?jimare=200166

Basra Oil Records Large Price Profits In A Week

Global oil exchanges closed with fluctuation in their prices during the past week at the closing, despite its decline in its last session on Friday.

Basra Heavy Crude closed down by 0.94 cents to reach $96.35, but it recorded significant weekly profits of $5.46, equivalent to 6.01%.

Brent crude closed in the last session also down by 0.66 cents to reach $103.20, but it recorded weekly gains of $2.04, or 2.02%.

US West Texas Intermediate crude closed down by $1.65 to $94.70 a barrel, but recorded weekly losses of $2.89, or 2.96%.

Last week witnessed fluctuations in oil prices, as expectations of economic stagnation were offset by the scarcity of supplies as a result of the Russian oil embargo by the European Union.   LINK

Formation Of A Higher Committee Headed By Al-Kazemi To Address Climate Change And Desertification

Initiation of treatment of salinity of the Euphrates River between three governorates

The General Secretariat of the Council announced the start of treating the salinity of the Euphrates River between the governorates of Diwaniyah, Muthanna and Dhi Qar.

The spokesman for the General Secretariat, Haider Majid, said that the Council of Ministers voted on the proposal submitted to it regarding the treatment of salinity in the Euphrates River, referring to the formation of a higher committee headed by the Prime Minister to address climate changes and desertification in the southern and western governorates, while the spokesman pointed out that the committee is awaiting its first meeting for the purpose of Develop visions and basic plans and then start their work.   LINK

Bloomberg: Iraq And Saudi Arabia Are Supplying Oil To Europe To Fill The Russian Vacuum

Energy    Economy News-Baghdad   Today, Saturday, Bloomberg Agency reported that Saudi Arabia and Iraq supplied Europe with crude oil, which helps oil refineries on the continent to overcome the shortage it suffers from .

And the agency stated, “More than one million barrels of crude oil arrived in Europe from the Middle East on a daily basis in the first three weeks of July, through a pipeline crossing Egypt, and according to ship tracking data collected by Bloomberg, the volumes almost doubled from what they were before.” general

Russia's military operation in Ukraine provoked a backlash among European companies, with many choosing to stop doing business with Moscow .

Shipments from Saudi Arabia dominate pipeline flows, but Iraq is also increasing deliveries .

Companies can either deliver in a pipeline called SuMed that crosses Egypt, or if there are ships small enough, to transport oil directly through the Suez Canal to the Red Sea, Iraq shipments do the latter .

In addition to these flows, about 1.2 million barrels per day were shipped toward the canal from the Persian Gulf in the first three weeks of July, mostly from Iraq .

This could bring total flows from the Middle East to Europe to 2.2 million barrels per day, an increase of nearly 90% since January (the last month before the start of the Russian military operation in Ukraine) .

The shift comes as volumes of Russian crude oil increase in the opposite direction, from Russian ports in the Baltic and Black Seas to buyers in India and China, given the abundance of cheap barrels in the two Asian countries at a time when fuel prices are rising.

70 . views   Added 07/23/2022 - 10:02 AM  Update 07/23/22 - 12:57 PM

https://economy-news.net/content.php?id=28978

Parliament Is Preparing To Challenge The Contracts And Agreements Of The Caretaker Government

Money and business   Economy News-Baghdad   On Saturday, the Parliamentary Integrity Committee threatened to challenge the contracts and agreements signed by the current government, as it is a caretaker government or daily business that does not have sufficient powers to sign them, warning the government against continuing with contracts outside of controls .

A member of the Parliamentary Integrity Committee, Ahmed Taha Al-Rubaie, said in an interview, "There are clear indications that the caretaker government has bypassed the constitution and the articles of the internal system. Ministers ."

Al-Rubaie added, "The current caretaker government continues according to its clear and indicated methodology with regard to contracts that have a clear and significant economic impact, and at the same time outside the controls and government instructions for the year 2014," noting that "these exceptions referred to, including going to the lowest bids and not opening the door Competition between companies opens a wide door to corruption and waste of public money, and this is a grave violation followed by the caretaker government .”

A member of the Integrity Committee warned, "the current government should not continue with its policy and go to correct this issue as it is in violation of the law and is a door to corruption and waste of public money," noting that "this issue will be discussed in the committee and addressing the concerned authorities for the purpose of correcting and correcting the course of the process in accordance with legal and constitutional frameworks ."

Al-Rubaie called "the government to review and correct the cabinet's decision to exclude the rehabilitation of Mosul International Airport in the last session of the Council of Ministers (Tuesday, July 19, 2022) from the effective contracting methods and budget instructions, and not to allow for manipulation of financial allocations for this vital project, which may delay its completion."

Views 75   Added 07/23/2022 - 9:58 AM    Update 07/23/22 - 12:57 PM

https://economy-news.net/content.php?id=28977

“SOMO" Expects That The Oil Export Capacity Across The Gulf Will Rise To 3.35 Million Barrels Per Day

Shafaq News/ The Iraqi Oil Marketing Company (SOMO) suggested on Saturday that the oil export capacity across the Gulf would rise to 3.35 million barrels per day, by next September.

“What is currently achievable is 3.3 million barrels per day taking into account not only the restrictions on export capacity, but also rehabilitation activities that may cause a halt,” the company’s deputy general manager, Ali Al Shatari, told S&P Global Commodity Insights Standard & Poor’s. Sometimes,” he said, adding that “this quantity may go up, of course, but I am a bit conservative until I see plans to develop export facilities go ahead.”

Iraq, "the second largest oil producer" in (OPEC), is pumping more crude in line with the (OPEC +) decision to cancel production cuts on July 21.

Al-Shatari explained, "SOMO expects Basra Heavy exports to reach about 1.1 million barrels per day in July, and Basra Medium, about 2.2 million barrels per day."

Iraq exported 1.120 million barrels per day of Basra heavy oil in June and 2.146 million barrels per day of Basra medium, and the total exports of southern oil amounted to 3.266 million barrels per day, according to SOMO figures.

Both grades are exported from Iraq's southern terminals on the Persian Gulf, which have been under expansion for several months but have faced many delays.    LINK

Barzani Heads To Baghdad To Solve "Outstanding Problems"

Policy   2022-07-23 | 05:50  2,499 views   Alsumaria News - Baghdad, Head of the Kurdistan Regional Government, Masrour Barzani, left today, Saturday, Erbil International Airport, heading to Baghdad, at the head of a government delegation.

And the media of the Kurdistan government stated, in a statement received by Alsumaria News, that Barzani "will meet during his visit, Prime Minister of the Federal Council Mustafa Al-Kazemi, in addition to a number of senior officials in Baghdad."

The statement added, "The visit aims to focus on the constitutional solution to the outstanding problems between the Kurdistan Region and the federal government, foremost of which is the oil and gas file."  LINK

"Exceeds Several Times The Saudi Program" .. Iran Intends To Establish A Power Plant In Iraq

Shafaq News/ Iranian knowledge companies intend to establish a power plant to supply 3642 megawatts of energy in Iraq.

The semi-official Iranian news agency Fars stated in a report published today, Friday, that the production of this number is 7 times the Saudi program to supply Iraq with electricity during the next three years.

The report pointed out that Iranian knowledge companies have so far invested capital in some countries of the world, including Russia, Syria, Iraq and other countries, to establish electric power production plants.

He added that these Iranian companies have opened several units for the production of electric power in Iraq called "Al-Sadr, Haidaria, Najaf and Rumaila" in addition to the completion of these projects.

The agency's report noted that cooperation between Iran and Iraq in the field of electricity was not limited to the establishment of electric power production stations, but that the Iranian side was involved in the maintenance of Iraqi stations as well.

On Tuesday, Iranian Energy Minister Ali Akbar Mehrabian announced that his country had signed the first long-term agreement with Iraq in the field of electricity.

Iraq has been suffering from a chronic electricity shortage crisis for decades as a result of the siege and successive wars. For many years, residents have protested against frequent power cuts, especially in the summer, when temperatures sometimes reach 50 degrees Celsius.

Iraq is holding talks with Gulf countries, led by Saudi Arabia, to import electricity from them by linking its organization with the Gulf system, after it had depended on Iran alone during the past years by importing 1200 megawatts as well as gas fuel to feed local electric power stations.

Iraq also intends to import electricity from Jordan and Turkey, in an effort from Baghdad to fill the shortage until it builds power stations that are able to meet local consumption.   LINK

An Economist Identifies A "Single Solution" To End The Housing Crisis In Iraq

Shafaq News/ An economic expert revealed today, Friday, a "single solution" to end the housing crisis in Iraq, and while pointing to the reasons for the rise in real estate prices, he stressed that population inflation contributed to an increase in demand for housing units.

Economist Nabil Jabbar Al-Ali told Shafaq News Agency, "The only solution to end the housing crisis in Iraq is to expand the borders of the current cities, and to create new cities, to increase the number of housing units."

On the reasons for the rise in real estate prices, the economist explained that "Iraqis are facing a crisis of high real estate prices as a result of the availability of loans and the absence of land."

Regarding the recent spread of vertical construction projects, especially in the capital, Baghdad, Al-Ali stated that "vertical construction has its justifications in city centers."

He pointed out that "inflation and population growth are on the rise, which has contributed to an increase in demand for housing units at a rate of 50-100 thousand units annually, which exacerbated the increase in the previous demand gap of more than two million housing units."

About a year ago, the Iraqi government proposed the "Dari" project in an attempt to solve the worsening housing crisis, and about three million citizens submitted through the electronic platform to obtain a plot of land that will often be on the outskirts of cities, to create new cities that will need infrastructure and business markets.

It is noteworthy that Iraq suffers from a stifling housing crisis due to the increase in its population compared to the number of residential complexes, in addition to the inability of citizens with limited income to build their own housing unit due to the high cost of land and construction materials.

The Ministry of Construction and Housing estimates that Iraq needs more than three million housing units to fill the country's housing crisis.   LINK