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
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
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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
