Dinar Recaps

View Original

TNT, Lynette Zang and more Monday 3-9-2020

TNT:

Harambe:  Reuters: OPEC countries lose $500 million a day in oil price crash ... Iraq $90 million (+/-) a day. (3/9/20)

Note: Please view interactive chart, Iraq’s oil income is projected to be reduced by $90 million dollars (+/-) a day.

https://fingfx.thomsonreuters.com/gfx/editorcharts/OIL-OPEC/0H001R8FBC7J/index.html

For the most part, oil is a top income source for members of the Organization of the Petroleum

Exporting Countries and such a dramatic fall in prices will put strain on their economies, some of which such as Iran and Venezuela, are already on the brink. 

Brent LCOc1 crude futures were down by as much as 31% to $31.02 on Monday, their lowest since mid-February 2016. At that low, prices were down nearly $20 a barrel from a high before the meeting of OPEC and its allies on March 6. 

This means that in total, and based on their average February production, OPEC members lost more that $500 billion in revenue, according to Reuters calculations. 

Chart: Oil price dive turns up the heat on OPEC finances - https://fingfx.thomsonreuters.com/gfx/editorcharts/OIL-OPEC/0H001R8FBC7L/eikon.png

The losses are a lot more pronounced when compared with the high of $71.75 a barrel that Brent hit in January. 

OPEC had been pushing for expanding the existing cuts with its allies, known as OPEC+, by an additional 1.5 million barrels per day to over 3 million bpd until the end of the year. Russia turned the proposal down, causing the collapse of the alliance and the start of a price war over market share. 

For some nations, including one the group’s richest members Saudi Arabia, fiscal budget break-even oil prices were already much higher than the oil price before the most recent collapse. 

“A $10 a barrel decline in oil prices lowers fiscal revenues by 2-4% of GDP, depending on the country, and fiscal break-even prices are well above current levels for all Gulf Cooperation Council sovereigns,” Jan Friedrich, Head of Middle East and Africa Sovereign Ratings here at Fitch Ratings said.

“However, at least the higher-rated sovereigns, particularly Kuwait, Qatar and Abu Dhabi, have ample buffers, mainly in the form of sovereign wealth funds,” he added. 

Interactive Chart: tmsnrt.rs/2TOo7nb

https://reut.rs/2vFHSFH

See this content in the original post

Cutebwoy:  Bankers hold an important meeting to discuss economic decisions

Banks   Economy News – Baghdad

A number of bankers held a meeting at the headquarters of the Iraqi company to finance small and medium enterprises to discuss a set of economic and banking decisions.

Participated in the meeting, the delegated director of the Iraqi Commercial Bank, Nuri Al-Dubais, the executive director of the Iraq Stock Exchange, Taha Ahmed Abdel Salam, and the United Bank Abdul Rahman Al-Sheikhly, the authorized director of the Iraqi Company for Small and Medium Enterprises Financing, Sulaf Hussain, advisor Adnan Chalabi and advisor to the Association of Iraqi Private Banks Khawla Al-Asadi and advisor Hamid Abdal Majeed.

The meeting also discussed, among other things, the Central Bank’s instructions for housing loans and the conditions contained therein.

While they stressed the importance of the Central Bank’s decision on housing loans in addressing the housing crisis and supporting citizens to improve their living conditions.

 The meeting also discussed a mechanism for activating bank shares in the Iraq Stock Exchange, in cooperation between banks, the Central Bank and the Securities Commission to prepare a study on this topic.  LINK

*****************

Tishwash:  Protesters from Nasiriyah demand the protection of Iraqi money

Who knows what they are saying  but the sign says it al… and who gave them that sign? hmmmm

https://youtu.be/dcYXGWJZDAY?t=9

Courtesy of Dinar Guru:  https://www.dinarguru.com/

Jeff  ...we're at the end...all the news talking about Iraq's economics.  Political scene.  The budget.  Everything is complete pure BS...everything is waiting on the rate change including the politics...only one level of news has been accurate.  That's the banking news.  You guys have seen some really good banking articles through this past week...

Breitling   ...the coronavirus...I've literally had people go nuts on me...here's the thing it's completely opposite.  The markets are driving oil prices down.  The demand for oil is going down.  Therefore Iraq is not bringing in enough U.S. Dollars to cover their budget and the solution is to add value to their own currency which is undervalued anyways.  What do you think the coronavirus is gonna do?  Do you think it's going to stop that or accelerate that? ...the reality is for Iraq, if it puts pressure on their economy, then it's going to lead to our advantage.  They need to add value to their currency to make up for what's being lost market wise...

Pimpy  ...because of the coronavirus crude oil is tanking, just like cryptocurrencies.  Just like the Dow.   These things are getting killed.  Just getting annihilated...it dropped to $45 I think right now.  It might have dropped a little bit more...between the protestors and their government and the PM I don't know how much worse it can get for Iraq.  It's just at its worse...this actually might be good for us in the Iraqi dinar community...let's just hope that oil prices keep going down and maybe that might trigger something that we've been waiting for...if ever a time before where Iraq needed a rate change to happen it's definitely now...

*****************

Lynette Zang: 

TRADING ON THE MARKETS HALTED: Oil Wars Combines with Covid-19 and Creates Wrecking Ball

https://www.youtube.com/watch?v=cB_aIuCX0CI

See this content in the original post