Samson: Experts warn of the rise of oil to $ 150 a barrel

17:06 – 06/01/2020

Oil prices escalated on the global stock market as a result of the ongoing tensions between the United States and Iran, which led to a decline in global stocks and high gold prices, and a decline in stock markets in Asia and Europe today, Monday, after the news of the US air strike in Iraq spread throughout the world.

The New York Times reported in a report translated by Information Agency that “the international benchmark for Brent crude jumped above $ 70 a barrel in futures trading, as the markets absorbed a steady flow of news during the weekend, and it has fallen below this level, To $ 69.92 a barrel, when markets opened in Europe, although the price was still about 5 percent higher than it was last week.

He added, “The investors appeared in a state of tension, as Iran pledged to respond to the killing of General Qassem Soleimani, while President Trump raised the specter of additional strikes on Iranian cultural sites if it did so.”

He added that “the sudden escalation of tensions in a region that supplies most of the oil in the world disturbed the oil markets, as the West Texas Intermediate index, which is the American oil index, rose 1.6 percent to 64.04 dollars a barrel in futures trading.”

It continued, “Analysts at Capital Economics warned that the price of oil could rise to $ 150 a barrel if the hostile rhetoric between the two countries turned into military action, while expert Alexander Kuzul Wright said that “oil prices will rise significantly in the event of a full military conflict in the Middle East.”

And the report stated that “stock prices fell in financial capitals throughout Asia. In Tokyo, shares fell by 2 percent, while the main stock markets in Hong Kong, Taipei and Seoul fell by 1 percent or more, while the price of gold, which is a safe investment, , To its highest level since April 2013, when the spot price of alloys reached $ 1588.13 an ounce, up more than 2 percent, in early trading before it fell slightly.  LINK

Samson:  Trump: Iran will never have a nuclear weapon

6th January, 2020

US President Donald Trump posted on his Twitter account a tweet in which he said that “Iran will not have a nuclear weapon.”

On Monday, January 6, 2020, the US President tweeted that Iran would not have a nuclear weapon. LINK

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Don961:  The economic cost of the Iraqi-American clash … Nabil El-Marsoumi

2020-01-06

Books: Dr. Nabil Al-Marsoumi

1. There is a high possibility that the United States will freeze Iraqi oil revenues that pass through the US Federal Bank to Iraq. As well as the possibility of freezing Iraq’s investments in US treasury bonds, which amount to $ 32.7 billion, and freezing Iraq’s other assets in American banks and financial institutions.

2. The collapse of the Iraqi dinar exchange rate due to the scarcity of foreign currencies and the suspension of the currency auction for the Iraqi Central Bank, which depends on the influx of oil dollars, which will lead to monetary instability and to price turmoil and its rise.

3. A significant decline in the Iraqi cash reserves in the Central Bank of Iraq, which depend on the flow of oil money and thus eroded ability to defend the Iraqi dinar exchange rate

4. The investment environment in Iraq will deteriorate greatly, Iraq will become a repellent for investment, and many international companies will refrain from investing in Iraq because of the security, political and economic instability that prevails in the country.

5. The 2020 budget will suffer from a real crisis due to the significant decline in public revenues on the one hand and the stop of international and American institutions from lending to Iraq, which is one of the important sources of financing the Iraqi budget deficit.

6. A significant decline in the production and export capacity of crude oil due to the expected withdrawal of US and foreign companies in general operating in the fields of licensing contracts as well as the suspension of projects aimed at developing the gas industry and infrastructure for the Iraqi oil sector

7. A sharp decrease in the volume of Iraqi foreign trade for each of the exports and imports funded mainly from oil revenues, which will lead to a huge rise in the levels of prices for goods and services and to a decline in the country’s revenues from ports and border ports.

8. The state’s inability to provide salaries for employees, retirees, and those covered by the social protection network that depends 87% on oil revenues, and that it is hoped that these salaries will increase by 14 trillion dinars in the 2020 budget to implement governmental and parliamentary reform packages

9. The United States is expected to abolish the exception granted to Iraq by importing gas and electricity from Iran, which will negatively affect the supply of electricity to citizens.

10. The significant losses that the Iraqi banking sector will be exposed to due to possible US sanctions.

11. Iraq will have to pay several billion dollars to the United States in exchange for its evacuation of its military bases in Iraq.

12. The decline in performance in the Iraqi economy, especially in the sectors of agriculture, industry, construction, and transportation, which will exacerbate the problems of poverty and unemployment in Iraq.

The great damage that will be caused to the Iranian economy, which depends a lot on Iraq, as Iran exports to Iraq $ 12 billion worth of goods annually that contribute greatly to reducing the severity of US sanctions on it, as well as stopping the flow of Iranian oil through Iraq and to the decline in the number of Iraqi tourists to Iran, which limits the flow Foreign currencies to Iran, as well as the suspension of oil derivatives imported by Syria from Iran through Iraq, as well as the endeavors aimed at linking rail networks between Iraq and Iran as part of a broader plan to enable Iran to transport its goods to Syria and its Mediterranean ports.    link

BillA:  Powerful article!!!! And is the reason that Parliament voted as a resolution and not a law yesterday. On top of that, this government is a care taker government only which doesn’t have the authority to remove SOFA. A new PM that is for the people will never remove the US for all of the above reasons…..IMO

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Frank26:  1-6-20. CHEST BEATING MONKEYS: VIDEO LINK

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