Zig’s Place Chatroom News Tuesday AM 7-6-21
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Butterfly Economist for / Nina /: Oil prices are constantly rising, and the price of a barrel may reach $100
Tuesday 06 July 2021 12:15……The economic expert, Abdul Hassan Al-Shammari, confirmed that: Oil prices are constantly rising, and the price of a barrel may reach $100.
He told the National Iraqi News Agency ( NINA ) that: OPEC Plus wants to maintain the current price of a barrel of oil, considering it a remunerative price that serves everyone.
Al-Shammari added that: Maintaining this price needs to raise production according to the needs of consumers so that the price remains stable.
He explained that: Prices are constantly rising, and the price of a barrel may reach $100 during the first half of next year.
Over the past few days, oil prices witnessed a continuous rise, reaching nearly $78 a barrel, due to the non-agreement of the OPEC Plus countries on a specific formula for production and export that meets the needs of producers and consumers.
butterfly ………….I could do without this kind of news today.
butterfly Egypt, Iraq, and Jordan: A New Partnership?…………..6th July 2021 in Iraq Industry & Trade News, Politics, Security……………..Egypt, Iraq, and Jordan: A new partnership 30 years in the making?
In April, the news that Iraq was mediating between longtime rivals Saudi Arabia and Iran captivated Middle East watchers.
Iraq’s new role as a Saudi-Iran intermediary comes as the Saudis have taken concrete steps in recent years to build a meaningful relationship with their northern neighbor, such as reopening their border last November for the first time since 1990.
Yet while the new Saudi-Iraq relationship is indeed noteworthy, Iraq has simultaneously been forging a regional partnership with two other Arab states: Egypt and Jordan. Indeed, Baghdad hosted a summit in late June attended by Egyptian President Abdel-Fattah el-Sissi and King Abdullah II of Jordan.
It was the fourth time leaders of the three countries have met together since March 2019, and the first time on Iraqi soil. It was also the first visit by an Egyptian president to Iraq in more than 30 years.
The full report can be read here.
butterfly Checkpoints Prevent Kurdish Traders from Exporting Produce………….6th July 2021 in Agriculture, Iraq Industry & Trade News…………Checkpoints between the Kurdistan Region and southern Iraq prohibit regular exports for Kurdish produce farmers.
Several domestic produce items are in season but do not have markets to export to.
Click here to read the full story. https://www.rudaw.net/english/business/05072021
butterfly 2021-07-06 06:23 Shafaq News / Iraqi Oil Minister Ihsan Abdul Jabbar stated that British Petroleum (BP) and Lukoil want to pull out of Iraqi energy projects because of the current investment environment, as OPEC’s second-largest producer faces a mass exodus of global oil companies that want to exit unappealing contracts.
“Investing in oil licensing rounds is useless for international companies because the profits they make are very low compared to the services they provide,” said Hamza al-Jawahiri, an oil expert, “the campaign against licensing rounds by some politicians is just a media hype intended to blackmail the ministry of oil.”
“Companies operating in the oil fields do not get lucrative profits as they get an overall rate of 1 dollar and 8 cents for every barrel extracted. Thus, these international companies are not convinced of these figures because they want higher revenues,” al-Jawahiri added.
The oil expert continued, “the companies were charging for production, development, and some expenses. However, now that charges are fixed, they can not manipulate them anymore. Therefore, their profits became less. That’s why licensing contracts are 90% fair for Iraq and 10% for the companies.”
“These companies’ departure is better for Iraq because we now have the personnel that can replace the foreign workforce, and acquired the technology, training, and the work systems. So we are in a very good position now.”
“The investment environment depends on many elements such as security, legislative stability, and the economic and banking ground, most of which are not available,” said Mohammed Saleh al-Jawad, a professor of Petroleum Engineering at the Baghdad University.
“Foreign companies want to achieve a semi-peak production. However, given Iraq’s unwillingness to raise the production to the point sought by foreign investors, what these companies obtain does not meet their ambitions.”
butterfly “National companies can replace international companies for they have the capacity and technology to manage large oil fields, similar to what happened in the Majnoon oil field after Shell Oil Company left,” al-Jawad said.
BP and Lukoil will join ExxonMobil, which is seeking to sell its stake in the southern oil field West Qurna/1.
BP is the main contractor in the Rumaila oil field, holding 38% of the shares along with CNPC’s 37% stake. The rest is jointly owned between the state-owned Basra Oil Company, the General Petroleum Marketing Corporation, and its partners in a technical services contract ending in 2034.
The Rumaila Oil Field is the largest in the country, with about 1.5 million bpd of the country’s production capacity of 5 million bpd and an estimated 17 billion barrels of remaining extractable oil.
Lukoil owns 75% of the shares of the huge West Qurna/2 field in the South. The remaining is owned by the state-owned North Oil Company.
In Iraq, international oil companies operate some of the largest fields in the country, for a fee per barrel pegged to production.
butterfly 2021-07-06 08:26 Shafaq News/ Oil prices climbed to multi-year highs on Tuesday after OPEC+ producers clashed over plans to raise supply to meet rising global demand.
Brent crude hit a session high of $77.84, a level not seen since October 2018, before losing momentum and easing to trade 25 cents, or 0.3% lower, at $76.91 a barrel by 1149 GMT.
U.S. West Texas Intermediate (WTI) crude futures traded up 75 cents, or 1%, at $76.91, after reaching $76.98 earlier in the session, the highest since November 2014.
Ministers from OPEC+, which groups producers from the Organization of the Petroleum Exporting Countries (OPEC) with Russia and others, abandoned talks on Monday as negotiations failed to close divisions within the group.
No date for further talks has been announced.
The United Arab Emirates said it would go along with output increases but rejected a separate proposal to extend curbs to end-2022 from an existing April deadline.
Some OPEC+ sources said they still believed OPEC+ would resume discussions this month and agree to pump more from August while others said current curbs might stay in place.
Goldman Sachs said the collapse of the talks has introduced uncertainty into the group’s production path, while maintaining its view of an $80 per barrel Brent price and gradual increase in output early next year.
“The differences between both parties seem surmountable as they agree on ramping-up production into year-end with the still high uncertainty for 2022 oil balances making a pledge to any long-term commitment unnecessary today,” the bank said.
The Biden administration is pushing for a compromise solution in the talks, a White House spokesperson said on Monday.
“We are not a party to these talks, but administration officials have been engaged with relevant capitals to urge a compromise solution that will allow proposed production increases to move forward,” the spokesperson said.
butterfly Iraqi Oil Minister Ihsan Abdul Jabbar said on Monday that his country does not want to see oil prices soaring above current levels and that he hoped that within 10 days a date would be set for a new OPEC+ meeting.
In a sign of a tightening market, top oil exporter Saudi Arabia raised the August official selling prices of all crude grades it sells to Asia, the country’s state oil producer Aramco said on Tuesday. Source: Reuters
butterfly 2021-07-06 05:06 Shafaq News/ The Parliamentary Finance Committee suggested that the rise in oil prices would contribute to stabilizing the exchange rate of the U.S. dollar against the Iraqi dinar in local markets.
Committee member Ahmed Al-Hajj Rashid told Shafaq News Agency, “Oil prices in global markets recorded their highest rates in years after the OPEC group agreement and the recent increase in demand for oil.”
“The rise in the dollar exchange rate affected citizens with limited income, and this caused a rise in the prices of real estate, food, construction and all commercial goods and merchandise.”
Rashid indicated, “The rise in oil prices will contribute to stabilizing the dollar exchange rate against the Iraqi dinar through the central bank pumping the currency into the market.”
Oil prices continued to surge today, following the cancellation of production talks for OPEC + countries, but fears that members may begin to increase production limited the gains.
After the Iraqi government’s decision to reduce the value of the Iraqi dinar against the dollar in late 2020, the exchange rate of every $100 reached 145,000 dinars, which led to a significant increase in prices in the Iraqi market.
This price was fixed in the 2021 federal budget. Until the moment, the dollar exchange rate has not been stable, as it had been below the official exchange rate for three months straight, but rose in the recent months to reach 151 thousand dinars per 100 dollars.