Wednesday AM Iraq Economic News Highlights 9-7-22

Due To Recession Fears, Oil Prices Record A Significant Decline

Economie   2022-09-07 | 01:54   1,168 views   Alsumaria News – Economy   Oil prices fell today, Wednesday, after Corona restrictions in China and expectations of further interest rate hikes renewed fears of a global economic recession and reduced fuel demand growth.

Brent crude futures fell $1.12, or 1.2 percent, to $91.71 a barrel by 0113 GMT, after falling 3 percent in the previous session.  US West Texas Intermediate crude futures fell $1.25, or 1.4 percent, to $85.63 a barrel.

Oil's strong gains were pared on Monday after the Organization of the Petroleum Exporting Countries (OPEC) and allies led byRussiaThe group, known as OPEC +, cut its production target in October by 100,000 barrels per day.    LINK

Iraq's Oil Production Rises To 4.7 Million Barrels Per Day

Economie| 11:34 - 07/09/2022  Baghdad - Mawazine News, Iraq's production of crude oil increased by 67,000 barrels per day in August compared to July, but exports from the south of the country remained restricted due to delays in infrastructure modernization, according to data from the Iraqi Oil Marketing Company (SOMO).

The data showed that Iraq produced 4.651 million barrels per day of crude in August, which is consistent with its share under the “OPEC +” agreement, but exports fell 62 thousand barrels per day, which prompted Baghdad to direct the surplus from August supplies to storage tanks and domestic consumption, According to Reuters.

The increase in exports of Basra Governorate in southern Iraq did not succeed in compensating for a decrease in shipments by 45,000 barrels per day from the Kurdistan region of Iraq, as the governorate’s exports rose by only 25,000 barrels per day from July to 3.25 million barrels per day in August.

Iraq's attempt to increase its export capacity through its Gulf ports has faced setbacks due to delays in upgrading pumping stations.

The state-owned Basra Oil Company planned to increase the south's export capacity to 3.35 million bpd in August and 3.45 million bpd by September, compared to about 3.3 million bpd now.

The new target for export came after the Basra Oil Company missed the scheduled date to reach 3.45 million barrels per day in the second quarter of its export capacity.

https://www.mawazin.net/Details.aspx?jimare=204757

Find Out The Total Value Of Iraq's Bonds In Global Markets

Economie| 09:51 - 06/09/2022  Baghdad - Mawazine News, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, revealed today, Tuesday, the total value of Iraq's international bonds in global markets and the revenues generated.

Saleh said, "The international bonds issued by Iraq are divided into two parts. The first relates to the bond called (Iraq 2028), which represents the dues of the foreign private sector for its debts owed by Iraq and called debts before 1990, which were deducted by 80% under the Nadi agreement.

Paris for the year 2004 and replaced the remaining receivables, i.e. 20%, with European bonds that are amortized once in 2028 and are currently traded in buying and selling in the European secondary capital markets, with a total value of 2.7 billion dollars and carrying an annual interest of 5.8%.

He added, "The annual interest to the holders is paid according to regular semi-annual schedules, and the management of these bonds is handled by the major international banks in the London market of the undertakers."

He pointed out that "the second section was issued in the year 2016, and they consisted of two bonds for Iraq's first with a value of (one billion dollars), and with the guarantee of the United States government and it is called (Tigris), and with an interest paid annually of about 2.4%, and the principal of the bond (Tigris) is paid once in the next year. ".

And Saleh continued, "The proceeds of the aforementioned bond go to the benefit of financing the deficit in the general budget during the war on ISIS terrorist gangs," noting that "the second bond was issued with a value of (one billion dollars) in the year 2016 and was called (the Euphrates) and with the guarantee of the government of the Republic of Iraq and with an interest that increased over 6.7% annually.

He pointed out that "the amount went to directly finance the deficit in the general budget in the circumstances of the war on terrorism, and it will be paid once in the next year as well," noting that "the lowest category of bonds is worth 200 thousand dollars, and the bond categories increase in multiples, and the interest is paid semi-annually." To bond holders through major international banks (obligors) until the value of the bond is amortized once in the next year.

Saleh stressed that "the total value of Iraq's international bonds currently circulating in European markets is about $4.7 billion, and these bonds are subject to Iraq's current credit rating of B, which is part of the country's external public debt to be paid."     https://www.mawazin.net/Details.aspx?jimare=204722

Iraq Achieves Huge Oil Revenues During 2022.. How Much Did It Reach?

Economie| 08:39 - 06/09/2022   Baghdad - Mawazine News, the Oil Marketing Company "SOMO", today, Tuesday, counted the revenues generated from oil sales during the past eight months, and while it indicated that it plans to increase exports to European markets, it presented its expectations regarding oil prices for the next year.

The Director General of the National Oil Marketing Company "SOMO" Alaa Al-Yasiri said that "the financial revenues generated from oil sales until the end of August amounted to about 82 billion dollars," noting that "the rise in prices contributed significantly to raising the revenues achieved."

He added, "The average revenue in the past months was about 11 billion dollars per month, in August it reached 10 billion and 200 million dollars due to the low price, while the volume of revenue in the month of June was 112 billion dollars per barrel and in July it was about 101 billion dollars."

He pointed out that "the decline is due to many reasons, the most important of which is the inflation in the global economy and the accompanying slowdown, as well as the closures in China."

On the European desire to buy Iraqi oil, Al-Yasiri explained, "Iraq is present in the European market, through contracting with major companies that own refineries in Europe, but its percentage of the sold crude oil is approximately (17-15%)," explaining that "the focus is It is currently the largest on the Asian market for many reasons, including being a promising market that consumes more crude oil and in order to achieve high revenues.

He pointed out that "the plan that we have for the remainder of this year and the coming year includes increasing the quantities destined for the European market, as all the company's customers in Europe were approached and we explained to them that any company has the desire to increase its quantities, we are able to do so."

And he indicated that "the aim is not to give up or leave the Asian market, but rather because the Asian market has intense competition because of Russian oil, which entered strongly and at low prices compared to what other countries have, and which left a void in the European market, and thus the revenue generated in this market became better, so we directed to increase Our quantities are in this market,"

noting that "since the beginning of the Russian-Ukrainian crisis, we expected the European market not to buy Russian crude, as well as Russia would direct its quantities towards Asia, and this is what actually happened."

Regarding OPEC’s decision to reduce production, Al-Yasiri pointed out that “the decisions taken in OPEC aim to serve the interests of the members of the organization, including Iraq, and they are voluntary decisions that do not obligate its members. 2020 The price of crude oil was very low due to the presence of problems in the global economy as well as the closures in most countries as a result of the outbreak of the epidemic, which affected the suspension of air, sea and land transportation.

All of this affected the demand for crude oil. The market becomes very low and the price becomes very low, as the OPEC countries headed towards balancing supply and demand, which is what we need at the present time.”

He continued, "If there is any inflation or stagnation in the global market, there may be a new agreement for OPEC, especially if the quantity supplied becomes greater than the required," noting that "Iraq is supportive of the options that are in its interest, so the organization's options in all cases are in favor of Iraq, which It is the second largest producer of crude oil in OPEC."

He stressed that "the decisions that are taken affect positively and negatively on Iraq, as it is one of the largest producers, but in general the decisions that are taken do not pass without the approval of Iraq first," noting that "if Iraq wants not to abide by the OPEC decision, it is not committed, and the commitment is voluntary and not mandatory, for all that is taken is It is in the interest of the producers.

Regarding the expectations for oil prices, Al-Yasiri said, “The major specialized institutions in the world have three expectations because oil prices are very sensitive and affected by many factors. We have the optimistic hypothesis about the events taking place in the world, which says that there will be a Russian-Ukrainian agreement in the end and the return of Russian crude to the market, and there is also an agreement between Iran and the West on the nuclear file and thus the return of Iranian crude to the market.

He went on to say: "In the event that what was expected occurs, the price will be very low due to the pumping of large quantities into the markets. As for the second expectation, there are those who see that the situation will be the next year as it is, and here the prices will not exceed 110 dollars per barrel. As for the third expectation, it is believed that In crises, there will be an escalation of what could raise oil prices to approximately or more than 130 dollars per barrel.    https://www.mawazin.net/Details.aspx?jimare=204714

Nazim: The European Union Will Give Iraq 75 Million Euros

Political | 05:50 - 06/09/2022   Baghdad - Mawazine News   , today, Tuesday, the Council of Ministers decided to authorize the Minister of Planning to sign an executive agreement with the European Union.

The council's spokesman and Minister of Culture, Hassan Nazim, said in a press conference attended by / Mawazine News / that "the Council of Ministers allocated during today's session six billion dinars to support the Arbaeen visit."

He added, "At the same time, he authorized the Minister of Planning to sign an executive agreement with the European Union," noting that "the European Union will grant Iraq 75 million euros to support the displaced." Ended 29 / h    https://www.mawazin.net/Details.aspx?jimare=204692

The Minister Of Labor Directs The Opening Of An Electronic Window To Include New Numbers In The Survivors Law

Iraq   10:32 - 09-07-2022   Today, Wednesday, the Minister of Labor and Social Affairs, Salar Abdul Sattar, directed the opening of an electronic window to include new numbers in the Survivors Law.

A statement by the Ministry of Labor stated that its Minister, Salar Abdul Sattar, directed the allocation of a window through the ministry’s website to include survivors and survivors by Law No. 8 of 2021, noting that “the General Directorate of Survivors’ Affairs in the Ministry in cooperation with the National Data Center in the General Secretariat of the Council of Ministers and with the support of the Organization for Migration The International Organization (IOM) has opened an electronic window to include the survivors of ISIS terrorist gangs in the Survivors Law.

For her part, the Director-General of Survivors’ Affairs at the Ministry of Labor and Social Affairs, Sarab Elias, said, according to the statement, that “the submission includes survivors and survivors of the Yazidi, Christian, Turkmen and Shabak communities, as well as male minors under the age of 18 who survived ISIS terrorist gangs and who Killings and mass liquidation are among the aforementioned components.

She explained, "The directorate's work, which includes organizing the applicant's file and submitting it to the committee concerned with the requests of survivors, which is headed by a specialized judge, to consider and approve it within a maximum period of 90 days after the citizenship and citizen submit an application through Ur electronic portal and fulfill all requirements and conditions."

And she indicated, "The application door will be available 24 hours and not specified in a time limit, through the electronic link: https://ysl.ur.gov.iq."    https://kirkuktv.net/AR/Details/8719

Global Gold Prices Are Falling

Economie   2022-09-07 | 03:37  610 views   Gold prices fell on Wednesday, with the dollar and Treasury yields rising after upbeat economic data boosted expectations that the Federal Reserve will continue to raise interest rates sharply.    And gold fell in spot transactions 0.5% to $ 1692.99 an ounce, by 0330 GMT, after falling earlier to its lowest level in a week.

US gold futures fell 0.6 percent to $1,703.30.

Strong US service sector data boosted the dollar, and the dollar index jumped to a 20-year high, making gold more expensive for overseas buyers.

US 10-year Treasury yields rose to their highest level since June 16, on expectations that the Federal Reserve will continue to raise rates. Higher returns increase the opportunity cost of holding non-returnable gold.

The Federal Reserve is expected to raise rates by 75 basis points on September 21. The US central bank has raised interest rates by a total of 225 basis points since March to curb soaring inflation.

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As for other precious metals, silver fell in spot transactions by 1.1 percent to $17.85 an ounce, platinum fell one percent to $844.43, and palladium fell one percent to $1985.25.   LINK