Iraqi News

Sunday Morning Iraq Economic News Highlights 1-1-23

Al-Maliki’s Coalition Reveals The Shape Of The 2023 Budget, The Price Of A Barrel Of Oil And The Dollar In It

Localities / Economy |Yesterday, 18:29 |Baghdad today – Baghdad Today, Saturday, the State of Law Coalition, led by Nuri al-Maliki, revealed the form of the 2023 budget law, the price of a barrel of oil and the dollar in it.  Muhammad al-Shammari, a representative of the coalition, told (Baghdad Today) that “the shape of the budget law for the year 2023 will be completely different from previous budgets.”

Al-Shammari explained that “the budget will focus on reforming the service, health and economic sectors and addressing poverty, and this matter is one of the first ministerial approaches to the government of Muhammad Shia’a al-Sudani.”

And that “the price of a barrel of oil in the budget will be (65) dollars per barrel, and the exchange rate of the dollar will be (1145) dinars, and this matter will provide good amounts to support service and economic reforms. ”

Al-Shammari added, “The Iraqi government will work to send the draft law to Parliament with the beginning of the new legislative term in the coming days.”   Editing: Linda R   LINK

Parliamentary Finance: The 2023 Budget Is Similar To Its Predecessors, And There Is No Real Change In It

2022-12-31 05:45  Shafaq News/ A member of the Parliamentary Finance Committee, Muhammad Nuri, saw, on Saturday, that the 2023 budget will be the same as its predecessors, ruling out any real change to its draft bill, which is to be voted on by the federal government and sent to Parliament for approval in the coming days.

Nuri told Shafaq News agency that the Ministry of Finance is working on completing the draft general budget law for the year 2023 and finalizing the law.

He added that the Ministry of Finance will send the final draft of the law to the Council of Ministers in the coming days.

He continued by saying that the draft budget for the year 2023 is somewhat similar to previous budgets, and there is no update or economic vision according to the country’s financial abundance,” adding that “there is no real change in this budget.”

Nuri noted that the Ministry of Finance calculated the price of a barrel of oil at 65 dollars and that the total amount of the budget law may exceed 180 trillion dinars.

And Minister of Finance, Taif Sami, had revealed, on Friday, that “the general budget will focus primarily on the health sector, supporting hospitals, reducing the conduct of operations abroad, supporting vulnerable classes, social care, and people with disabilities, and raising the loan capital ceiling for small projects in the Ministry of Labor.” “.

She added, “The price of a barrel of oil, which has been set so far in the general budget, amounted to 65 dollars, and it may reach 70 dollars, and it has not yet set the total amount of the budget, while the dollar exchange rate has been fixed at 1450.”

And the Minister of Finance indicated that “the draft general budget law may include a study to impose some taxes on the oil derivatives sector, if approved by the House of Representatives, which would enhance revenues.”

It is noteworthy that the financial budget for the current year 2022, which is nearing completion, was not approved by the Council of Ministers and Representatives due to the turmoil that Iraq witnessed after the early elections in October 2021, which escalated to dangerous levels that ended with the events of the Green Zone, with armed confrontations between supporters of the Sadrist movement and the forces. security forces, which claimed dozens of lives and injured hundreds.

After the end of the crisis, with the agreement of the political blocs to elect the President of the Republic and to grant confidence to the government of Prime Minister Muhammad Shia’a al-Sudani, the latter pledged that he would present the draft federal budget law for the year 2023 as soon as possible. LINK

Central Bank: Banks’ Outlets For Selling Foreign Currency Will Be Doubled

December 31, 2022 9 Views   Conscious / Baghdad / MA  The Governor of the Central Bank of Iraq, Mustafa Ghaleb Makhaif, confirmed today, Saturday, that the high exchange rate is a temporary situation, while indicating that the outlets for selling the currency will be doubled.

The bank said, in a statement received by (Iraqi Media News Agency / INA), that “the governor of the Central Bank of Iraq, Mustafa Ghaleb Makhaif, conducted a field visit to a number of banks that began selling foreign currency.”

The statement added, “The governor urged, during his meeting with bank departments, to facilitate the procedures for selling foreign currency to citizens wishing to obtain it for the purposes of travel, treatment, and others,” noting that “the Central Bank of Iraq has taken a number of decisions that contribute to achieving stability in the foreign currency market.” .

And he confirmed, according to the statement, that “bank outlets for selling foreign currency will be doubled to meet the needs of travelers, with the possibility of increasing the amount of the weekly share allocated to banks.”

He described Mukhaif, that “the rise in the exchange rate is a temporary situation that came after internal and external effects of applying international standards, as the bank succeeded in addressing it and minimizing its effects on the Iraqi economy, stressing not to raise public concerns about the rise in dollar exchange rates, and the need to take deterrent measures against it.” Speculators, stressing that the situation in Iraq is much better than other countries and there is no way to compare it.

And the statement continued, “During the tour, Mukhaif met with a number of citizens who wanted to buy foreign currency.”

It is mentioned, “The Central Bank of Iraq has taken a series of decisions to return the foreign currency market to its normal position.”   T/MM https://1-al–

Our Economy Is In The Crosshairs Of American Targeting.. What Next!

December 31, 2022  Baghdad / Obelisk: Muhammad Hassan Al-Saadi

Despite the pledges made by the United States towards Iraq, to protect its security and economy since its invasion in 2003, and its signing of the strategic framework paper between the two countries, indicators of this support are completely missing on the ground, as we do not find any evidence of support in adopting construction and reconstruction of infrastructure or major projects , or support the institutionalization of the government and the protection of public money from theft, and all these promises and pledges remained a dead letter, and did not reach the degree of implementation because of the US policy toward Iraq.

The United States, since its inception, and its entry into the global economy, we have never seen it enter into support for the economy of any country, except in what serves it, and reaps a double interest from it..

When we find it supported many countries, not for the interest of those countries, but rather for the ends that it wants for itself. It reaps its higher interests behind it, and unfortunately, many Arab regimes were supportive, and even instrumental, to this authoritarian approach, which made them submissive and servile to the expansionist policies of the White House.

Washington decided to reduce financial support for Iraq, from the money in the Iraqi Development Fund from oil sales, in a dangerous precedent that threatens its economy and warns of its collapse, and the fall of its currency “the dinar” against the dollar, which means losing its value internally, and this method of war against countries that Its economy relies on the dollar, which is a direct confrontation and an attempt to starve it economically, in a way that affects its economic security in general and food security in particular.

In the face of this political and economic pressure, the Iraqi government should take measures to neutralize Washington’s pressure policy, provided that it suffices internally with hard currencies and relies on the Iraqi dinar, and takes measures to protect its currency by curtailing the role of private banks and trying to dominate the market, in addition to To completely control the stock market, and to remove the corrupt from playing a role in buying and selling currency, and to work to return smuggled funds abroad, through agreements with the smuggled state, in a way that achieves financial self-sufficiency, away from the policy of speculation and the threat to the economy, and to stop The country’s financial hemorrhage.

It is believed, as seen by many observers and economic analysts, that Iraq can open up to the global economy, and open channels of communication with the rest of the international companies working in the field of building, construction and infrastructure, while maintaining a balance between Washington and these companies, in a way that strengthens partnership balanced on the one hand, and openness on the other hand, thus achieving partnership with everyone and controlling the Iraqi economy internally according to a studied, realistic and effective approach..

On the contrary, the government and the country behind it will remain hostage to the desires of other countries, and the policies and interests of those countries, not the interest of Iraq and its people.. At the forefront of that country is America, which is a country whose economic or political influence is not to be underestimated, especially in the situation of a country like Iraq..

After An Imperfect End To 2022… Aspirations For A Recovery In Oil Demand In 2023

economy |Today, 08:31 |  Baghdad today – follow-up

The year 2022 is considered one of the most difficult years for the crude oil market, due to the Russian-Ukrainian war, which began on February 24 of last year, and its repercussions on the oil market will continue indefinitely.

The war caused a huge jump in oil prices in the aftermath of the war, reaching $140 a barrel, before it declined in the subsequent months under the pressure of fears of economic recession and the frequent rise of interest rates to contain inflation in the United States And several other major competitions, in addition to renewed infections with the Corona pandemic in China. Crude oil prices fell below $100 a barrel.

October 2022 also witnessed the largest move by the “OPEC +” coalition to reduce production after several years of gradually raising production to compensate for what happened in 2020 due to the outbreak of the Corona pandemic, and the alliance cut production by two million barrels per day after the expansion of global economic recession fears, and work extends to cuts. Until June 2023.

The “World Oil” international oil report stated that the crude oil industry during 2022 achieved positive results with regard to crude oil exports, which broke record levels, and the launch of oil projects worth billions of dollars.

The report pointed out that crude oil prices witnessed a special year of sharp fluctuations, as the US market was desperately looking for more supplies even as the main prices fluctuated due to fears of a global recession.

The report stated that the major international energy companies had extensive achievements due to the wide revenues they achieved, noting that ExxonMobil is moving forward with the $10 billion Guyana offshore oil project.

The report indicated that last year witnessed US President Joe Biden’s call to unleash shale oil to confront the worsening energy crisis, after a period when the US administration was deliberately avoiding supporting US shale oil projects.

The report that Lukoil was the only Russian oil company that stated for a “quick solution to the military conflict” in Ukraine, explaining that on the other hand, Canadian oil exports to Asia reached a record level, as Canadian oil sands producers were able to export a record amount of oil. Crude oil to foreign markets thanks to a new link to the US Gulf Coast.

The international “Reg Zone” report stated that crude oil prices ended a volatile year with an increase, as investors look forward to a possible recovery in Chinese demand during 2023.

The report indicated that the price closing at the end of 2022 was far from the triple digits seen earlier. , after the Russo-Ukrainian war upended global supplies and pushed up prices.

At the end of 2022, crude oil prices recorded the second consecutive annual gain, as Brent crude gained 10 percent, compared to 50 percent in 2020, while American crude gained 7 percent after an increase of 55 percent in 2021.

Oil prices also made gains. . A weekly increase of 3 percent for Brent crude, 2.4 percent for US crude, due to the easing of lockdown measures in China, the continued production cuts in the “OPEC +” alliance, and the repercussions of the stoppage of US refineries.

The report stated that the global Brent crude index witnessed the largest weekly fluctuations ever, while the lack of liquidity continued, and sharp fluctuations grew, explaining that the gains had largely evaporated due to fears that the central bank’s efforts to curb inflation would affect growth, in addition to the state of uncertainty. on the demand outlook in China.

The report pointed out that China is currently working to cope with the increasing cases of infection with the virus, and fears are growing about a new global outbreak, but there is optimism that demand will eventually recover in the largest importer of crude oil in the world .

The report noted the emergence of supply chain problems again, as the impact of the virus on China’s economy has multiplying effects around the world, pointing out that, in return, China said “it will open its country to international travelers in the next month.” ”

The report that the ban imposed by Russia on selling oil to countries that imposed a maximum price per barrel of $60 appears to have had little impact on prices so far, as India, China and Turkey will continue to provide outlets for selling Russian crude Urals , because these countries do not participate in the price ceiling.

The report quoted the Energy Information Administration last week as confirming that commercial crude oil stocks rose slightly by 718,000 barrels to 419 million, which reduced the deficit to 6 percent below the normal level for this time in 2022, as the gains are back to an extent . Significant to the release of more oil from the US Strategic Petroleum Reserve.

The report indicated that crude oil prices were unable to achieve strong gains despite the decline in the dollar, which has an inverse relationship with crude oil prices.

The report pointed to the significant impact of the winter storm “Elliott” on oil and fuel production on the US east coast, suggesting that thousands of flights that were canceled in conjunction with the outbreak of the storm would lead to an increase in distillate stocks.

On the other hand, the “Oil Price” international oil report highlighted Russian President Vladimir Putin’s assertions that Russia has become one of the main suppliers of oil and gas to China, as 13.8 billion cubic meters of gas were shipped to China in the first 11 months. months of 2022. The

report indicated that Russia will gain larger shares in the Chinese market thanks to the availability of crude oil supplies from the Russian Urals Mountains at huge price reductions.

The report added that “China and India have become among the largest buyers of Russian oil and gas as a result of the fact that Russian crude oil from the Urals is traded at a huge discount of more than $30 per barrel, or about 40 percent.” less than the international level.”

The report promised that Moscow could lose about four billion dollars a month in energy revenues – according to data from international bodies. The report indicated that commodity trading in the festive week between Christmas and New Year’s was very light, but whether it was for oil or metals markets in general. We find that China continues to set the tone for the general sentiment of the oil market.

The report added that the high “presumed, but not reported” cases of Corona virus greatly affected prices, as well as the gradual recovery of the United States from the polar ice weather crisis last week, which marginally boosted prices, but the overall market situation led to a decline in West Crude. Texas median to below $80 a barrel again.

The report noted the impact of Russia’s ban on oil exports to the coalition of countries that applied the price ceiling on Russian oil sales, referring to the decision of Russian President Vladimir Putin to ban the supply of oil and petroleum products to countries that adhere to the Oil price ceiling, with the application of the procedure at all stages of supply until the final buyer, provided that the decision will enter into force on the first of next February.

The report highlighted the efforts of US refineries to recover and return to operation quickly, as refineries in the US Gulf Coast seek to resume work in dozens of facilities that stopped their operations due to the recent ice crisis, with a total of 3.6 million barrels per day of operable capacity.

On the other hand, with regard to prices at the end of last week, oil prices recorded significant gains in their last trading session in 2022, and recorded the second consecutive annual gains.

Upon settlement, Brent crude rose by about 3 percent, recording $85.91 a barrel, recording an annual gain of 10 percent, after rising 50 percent during 2021.

US crude also rose 2.4 percent, to $80.26 a barrel, recording an annual gain of 7 percent. after an increase of about 55 percent in 2021.

Oil prices witnessed sharp fluctuations in 2022, as they rose, supported by the decline in supplies, coinciding with the Russian-Ukrainian war.

But prices have since given up most of the gains recorded at the start of the war amid weak demand from China – the largest consumer of crude in the world – and fears of an economic recession.

On the other hand, there was no change in the total number of active drilling rigs in the United States this week, as the total number of rigs remained at 779 this week, 193 rigs higher than the number of rigs this time in 2021 and 296 rigs less than the number of rigs at the beginning of the year. 2019 before the epidemic.

The weekly report of the American “Baker Hughes” company indicated that oil rigs in the United States decreased by one rig this week, to 621, as gas rigs increased by 1 to 156, while the various rigs remained unchanged at two.

The report pointed out that the number of rigs in the Permian Basin increased by one this week to 353, while the rigs in “Eagle Ford” remained unchanged.

The report noted the decline in crude oil production in the United States to the level of 12 million barrels per day in the week ending December 23, according to the latest weekly Energy Information Administration estimates, while production levels in the United States increased by 300 thousand. barrels per day in 2022 and only 200 thousand barrels compared to the previous year. . Edit: A.F   LINK

A Neighboring Country To Iraq Reduces Fuel Prices For Its Citizens By 2023

Arab and international  Economy News-Baghdad   Jordan announced a reduction in fuel prices, starting next January

The Jordanian Petroleum Derivatives Pricing Committee, during its meeting today, Saturday, issued a decision to reduce the prices of gasoline (octane 90) by 20 fils, and gasoline (octane 95) by 30 fils, according to the Jordanian “Ammon” agency.

With these amendments, the selling price of 90-octane gasoline in January will be 900 fils/liter instead of 920 fils/liter, and the price of (95-octane) gasoline will be 1140 fils/liter instead of 1170 fils/liter.

The committee also decided to reduce the price of diesel for the month of January, by 75 fils, to 820 fils/liter instead of 895 fils/liter, and to reduce the price of kerosene by 75 fils, to 785 fils instead of 860 fils/liter.

The decision of the Petroleum Derivatives Pricing Committee in Jordan to reduce fuel prices for the month of January was a reflection of the average international prices during the month of December, and the amendment of the pricing system for petroleum derivatives contributed to reducing them.

Views 350   Added 12/31/2022 – 9:16 PM   Updated 01/01/2023 – 12:42 PM