Iraqi News Highlights Sunday Afternoon 7-2-23
Tlm724 Administrator Bondlady’s Corner
An American Report: The Oil Market Sends A Warning To Those Betting On Its Price Recovery
Energy Economy News _ Baghdad The American newspaper “The Wall Street Journal” said that the oil market issued a warning to Saudi Arabia and all those who bet that oil prices are poised for a recovery, saying, “Do not count on that.”
The newspaper said, in a report followed by “Al-Iqtisad News”, that the oil-rich kingdom cut production starting this weekend, as part of a high-risk gamble that was revealed last month to curb supplies to raise prices, and Saudi officials believe that demand will exceed production later this year. year, which increases prices, which will restore the flow of profits to oil producers.
She mentioned that analysts at the International Energy Agency and Wall Street banks agree that the demand for oil may rise in the second half of 2023, but the problem is that the oil market appears to be at odds with all these expectations.
A major market indicator indicates that traders believe supplies will not shrink for the next several months.
The measure is based on the gap between the price of oil on different dates.
In recent days, spot Brent oil contracts have declined relative to futures crude and this dynamic, known as contango, is an indication that supplies are more than sufficient to meet demand.
“It’s a really bearish signal,” said Greg Newman, CEO of London-based brokerage Onyx Capital Group. Newman added that the surprise is that the price of Brent itself did not fall, and he expects the price of Brent crude to fall to between $58 and $62 a barrel.
China’s recovery has been slower than economists expected and Beijing has rolled out a plan to spur growth, but investors say it is not enough so far to spark a significant increase in demand for commodities.
Brent crude prices fell 13% in the first half of the year to around $75 a barrel on Friday, despite earlier cuts by the Riyadh-led OPEC+ cartel, meaning cheaper prices at gas stations for US drivers heading into the summer travel season.
Regular fuel prices averaged about $3.54 a gallon as Independence Day approached, about $1.30 less than last year.
Fuel consumption is declining in China and Europe, according to Marwan Younes, chief investment officer at hedge fund Masar Capital Management.
It also appears that a portion of China’s near-record crude imports are going towards strategic reserves.
“The larger and broader macro forces will indeed dampen global growth,” Yunus added.
By cutting production, Riyadh has boosted prices for the sour crude it produces but has failed to stimulate the broader market, says Adi Imcerovic, director of consultancy Sari Clean Energy and a former trader in the oil market.
As a result, the benchmark oil price in Dubai rose last week above Brent crude, the global benchmark, for the first time since the fall of 2020, which is rare because the oil traded in Dubai is thicker and contains more sulfur.
Dubai prices are heavily influenced by Saudi production while Brent crude measures the price of oil produced in Europe and Texas.
An additional risk for the oil bulls is that contango in Brent crude prevents money managers from investing in oil derivatives. When futures contracts become more expensive the further away from their expiry date, optimistic investors lose money as they adjust positions to avoid oil shipments.
There are some forces driving prices higher. American drivers, who consume nearly a tenth of the world’s oil, are burning 3.8% more gasoline than they did a year ago.
Changing the way Brent prices are calculated – adding US crude into the mix – could confuse the signal the index sends about the state of the global market.
However, Younis said of Masar, any rush to buy crude oil may be short-lived, as the big obstacle is the decline in petrochemical production, due to the slowdown in the pace of manufacturing in general.
Refining companies lose money for every barrel of plastic naphtha they produce, so they have cut back on their purchases of the crude needed to make the oil product.
High interest rates have also encouraged refiners to sell oil stocks by increasing storage costs, which is affecting prices. In addition, there has been an increase in Iranian oil exports amid talks with Washington, and an increase in pessimism by some analysts.
“The problem is with cutting production in an environment that is already weak, so the impact is limited,” says Ole Hansen, head of commodity strategy at Saxo Bank. “It looks like we may be in this situation for some time.”
Views 10 Added 07/02/2023 – 5:03 PM https://economy-news.net/content.php?id=34966
Iraq: The Average Oil Exports For The Month Of June Exceeded 3,335,000 Barrels Per Day
Posted On2023-07-02 By Sotaliraq 02/07/2023 Iraq announced, yesterday, Saturday, that the average crude oil exports for the month of June amounted to more than 3,335,000 barrels per day.
A statement by the Iraqi Ministry of Oil stated that crude oil sales for the past month achieved financial revenues that exceeded 7 billion and 115 million dollars, while the selling price of a barrel of oil exceeded 71 dollars per barrel.The ministry said in its statement that all quantities were exported from the fields of central and southern Iraq and the Qayyarah field in Nineveh Governorate.
It is noteworthy that Iraqi exports from the fields of the Kurdistan region and Kirkuk have been suspended for about four months through the Iraqi-Turkish pipeline to the Turkish port of Ceyhan, at a rate of 500,000 barrels, due to financial and technical problems that the two sides were unable to settle due to the decision of the International Arbitration Court in Paris regarding inventorying Iraq’s oil exports, Iraqi Oil Marketing Company / SOMO. LINK
Chambers Of Commerce: Saudi Arabia And The UAE Have Allocated $6 Billion To Support Their Operations In Iraq
Money and business Economy News _ Baghdad Today, Sunday, the Federation of Iraqi Chambers of Commerce announced that it had reached an agreement with the UAE and Saudi Arabia to form business councils, while noting that Saudi Arabia and the UAE have allocated $6 billion to support its operations in Iraq.
The head of the union, Abd al-Razzaq al-Zuhairi, said in an interview with the Iraqi News Agency, followed by “Al-Iqtisad News”, that “Iraq must keep pace with the world and form the global trade process, taking into account the standards of the World Bank, and have complete automation in the process of entry and exit of goods,” stressing ” There should be a complete program in customs and ports.
He added, “The first step began with registering data for merchants and registering companies, and this is a great support that we got from the Council of Ministers and the United Nations, and we have reached a good stage.”
And he continued, “Now we have entered the (Swift) stage, meaning that the transfer of money in the world of trade, the importer and the exporter, is known, which will make Iraq one of the developed countries.”
He pointed out that “the federation is among its tasks to establish business councils and conclude agreements, as we have reached with Saudi Arabia and the UAE to form business councils, to improve trade with the two countries,” noting that “the desire is not only in trade, but in the establishment of investment projects.”
He pointed out, “The location of Iraq is important, and it is the greatest (transit) region in the world, as the world is reduced to only 9 days from Asia to Europe through the development project, so we are in a positive stage.” Views 9 07/02/2023 https://economy-news.net/content.php?id=34964
Al-Hakim And The Former Prime Minister Confirm: Iraq Is The First Beneficiary Of Zeroing Out The Region’s Crises
Iraq Sunday, July 2, 2023 Baghdad / National News Center
The leader of the Wisdom Movement, Ammar al-Hakim, and the former Prime Minister, Adel Abdul-Mahdi, confirmed today, Sunday, that Iraq is the first beneficiary of zeroing out the region’s crises.
Al-Hakim said in a statement received by the National News Center: “We met this morning, His Excellency the former Prime Minister, Adel Abdul-Mahdi, and we exchanged congratulations on the occasion of Eid Al-Adha.
He added, “We renewed our praise for the approval of the budget for three years, and we held officials and governors responsible for providing services and improving the municipal reality.”
He called for “perpetuating stability and turning it into a permanent one,” adding, “stressing that” Iraq is the first beneficiary of zeroing out the region’s crises.
Al-Hakim praised “the role of the successive Iraqi governments that paved the way for the rapprochement of the parties in the region, and the current government has strengthened it with practical steps.” https://nnciraq.com/214058/
Environment Sends An Urgent Appeal To The Ministry Of Resources Regarding The Marshes
Iraq Sunday, July 2, 2023 Baghdad / National News Center Today, Sunday, the Ministry of Environment sent an appeal to the Ministry of Water Resources to increase releases to the marshes.
In a statement received by the National News Center, the ministry stated, “We address our appeal to the Ministry of Water Resources to increase water releases from the marshes, especially the Hawizeh marshes in Maysan.” She added, “This marsh is suffering from an environmental disaster due to drought.” https://nnciraq.com/214088/
Dollar Prices In Baghdad Stabilize With The Closure
Market Economy News _ Baghdad Dollar prices stabilized today, Sunday, in the Baghdad markets, with the closure.
The price of the dollar recorded stability with the closure of the Al-Kifah and Al-Harithiya stock exchanges, to record 147,300 dollars against 100 dollars, which are the same prices that were recorded this morning.
The buying and selling prices in exchange shops in the local markets in Baghdad have stabilized, as the selling price reached 148,500 Iraqi dinars, while the buying price reached 146,500 dinars for every 100 dollars. Views 13 Added 07/02/2023 https://economy-news.net/content.php?id=34962
To read more current and reliable Iraqi news please visit BondLady’s Corner:
https://www.bondladyscorner.com/