Saturday AM Iraq Economic News Highlights 7-16-22

Economist: Biden Will Fail In His Moves In The Middle East To Compensate For Russian Gas Supplies

Posted On 2022-07-15 By Sotaliraq   [size=45]An economic expert, Muhammad Attia al-Saadi, said on Friday that US President Joe Biden will fail in his moves in the Middle East to push the region towards increasing oil production in order to compensate for Russian gas supplies.

Al-Saadi said, "It is expected that there will be an increase in demand for oil with the rise in prices in light of the continuation of Russian military operations in Ukraine and the escalation of European-American sanctions on Moscow."

He added, "Washington will not be able to control market prices through the moves led by US President Joe Biden in the Middle East with the aim of putting pressure on the Gulf countries to increase production and compensate for Russian oil."

And he indicated that "Moscow has multiple markets for the sale of oil and gas, and it also has influence and interests in the region that enable it to influence the production and export of energy from the Gulf region."

He pointed out that "global reports indicate a high pace of global demand for oil, which neither Saudi Arabia nor others can secure market supplies and achieve balance in the production, export and consumption of energy in the world." LINK

Minister Of Planning: The Iraqi Government Seeks To Diversify Sources Of Income And Support Development Programs

Economie| 05:48 - 15/07/2022   Baghdad - Mawazine News, Minister of Planning Khaled Batal Al-Najm confirmed, today, Friday, that the Iraqi government seeks to diversify sources of income and support development programs.

Al-Najm said, according to a statement after his participation in the high-level political forum for sustainable development organized by the United Nations in New York that "Iraq's priorities at this stage are to return to the sound development path to achieve the sustainable development agenda and its goals for the year 2030."

He added, "We got out of the war against ISIS terrorist gangs and started to address the financial consequences of the war, the file of the displaced, and the reconstruction and stability of the affected areas."

He added, "Iraq witnessed a mass movement in 2019 that led to the resignation of the previous government, and the Corona pandemic caused economic problems, which exacerbated the challenges and negatively affected the pursuit of sustainable development goals."

The Minister of Planning confirmed that "Iraq completed the response document and the pandemic recovery plan in cooperation with international and local partners, and it was launched in 2021."

He pointed out that "the drop in oil prices, and Iraq's commitment to the (OPEC +) agreement in 2019 to reduce the share of production and export by 23%, exacerbated the challenges and negatively affected the pursuit of sustainable development goals."

He pointed out that "after the Corona pandemic, the world witnessed a sharp rise in food and energy prices, which cast a heavy shadow on countries with special circumstances, including Iraq, and hampered their efforts to achieve sustainable development goals."

Al-Najm said that "Iraq is one of the most vulnerable countries in the world towards climate issues, in addition to the scarcity of water resources related to the preparation of potable water, agriculture and the flooding of marshes."

And he indicated that "the unfair water policies of the riparian neighboring countries have greatly harmed Iraq and negatively affected many development goals."

He stressed, "The Iraqi government's endeavor to build plans and support programs to confront challenges and respond to these changes, through various tools, the most important of which are the economic and structural reforms presented by the government, as in the white paper, and it also seeks to diversify sources of income and support development programs." Ended 29 / h   https://www.mawazin.net/Details.aspx?jimare=199429

Allawi Warns Of A "Knockout Blow" And Calls On The Government To Develop Radical Solutions

Shafaq News/ The head of the National Coalition, Iyad Allawi, warned on Friday of an environmental disaster and continuous desertification, calling on the government to develop radical solutions.

He said in a statement received by Shafaq News Agency, "The failure to develop long-term strategies and ignoring the warnings that we had previously warned for the future of Iraq portends an environmental catastrophe and continuous desertification."

He added, "The government should deal immediately and seriously and develop realistic and urgent plans and solutions with Turkey and Iran, and in the presence of the United Nations, for the dams they are doing that cut off Iraq's natural water share."

He pointed out that "the drought that surrounds us with the interruption of river supplies has reached the lowest levels, and the components of the economy are gradually being lost with a fatal blow, as neither livestock nor fisheries and agriculture are ringing its bells."   LINK

After Its Global Decline, A Significant Drop In Gold Prices In Iraq

Shafaq News/ The prices of "foreign and Iraqi" gold in the local markets decreased significantly, with its decline globally, today, Saturday.

Shafak News Agency correspondent said that gold prices in the wholesale markets on Al-Nahr Street in the capital, Baghdad, recorded this morning, the selling price of one weight of 21 carat of Gulf, Turkish and European gold amounted to 351,000 dinars, and the purchase price of 347 thousand, while prices were recorded on Thursday before the Eid holiday. Al-Adha 358 thousand dinars.

Our correspondent indicated that the selling price of one 21 carat weight of Iraqi gold also decreased at 314 thousand dinars, and the purchase price reached 310 thousand.

With regard to gold prices in goldsmiths’ shops, the price of selling a weight of Gulf 21-carat gold ranges between 350 thousand and 360 thousand dinars, while the selling price ranged from the weight of Iraqi gold between 310 thousand and 320 thousand dinars.

It is equal to one mithqal of gold (five grams).

Gold prices fell globally and recorded the fifth consecutive weekly loss, as expectations of a significant interest rate hike by the US Federal Reserve led to supporting the dollar and eroding the attractiveness of bullion. LINK

The Dollar Is Rising In The Iraqi Market

Economie| 10:56 - 16/07/2022  Baghdad - Mawazine News  The dollar exchange rates witnessed, today, Saturday, a slight increase in the Iraqi Stock Exchange.

Selling price: 148,550 dinars per $100   purchase price: 148,450 dinars per $100

https://www.mawazin.net/Details.aspx?jimare=199477

Oil Prices Rise 2.5%

Economie| 08:56 - 16/07/2022   Follow-up - Mawazine News:  Oil prices rose 2.5% after a US official told "Reuters" that an immediate increase in Saudi oil production is not expected, and at a time when investors are wondering whether OPEC has room to increase crude production significantly.

Brent crude futures rose 2.5 percent to $101.60 a barrel, while West Texas crude rose 2.5 percent to $98.16.

On the weekly front, both benchmarks posted their biggest weekly percentage declines in about a month, mainly due to concerns earlier in the week that an impending recession might curb demand. Ended 29/N33 https://www.mawazin.net/Details.aspx?jimare=199468

Al-Kazemi And Bin Zayed Discuss Cooperation In The Fields Of Economy And Energy

Baghdad / Obelisk: The Prime Ministry revealed, 07/16/2022, the files discussed by Prime Minister Mustafa Al-Kazemi and UAE President Mohammed bin Zayed in Jeddah.

Al-Kazemi and bin Zayed met on the sidelines of the Jeddah Security and Development Summit, hosted by Saudi Arabia.

The meeting discussed, according to a statement by the Prime Minister's Media Office, a number of bilateral files, foremost of which is cooperation in the fields of economy and energy, and ways of consolidating, sustaining and developing them in a way that enhances the interests of the peoples of the two brotherly countries in various fields and levels.    https://almasalah.com/archives/4039

An International Company: Baghdad May Pay Billions Of Dollars In Compensation To Oil Companies 

Baghdad / Obelisk: Gibson Dunn, the American international legal company, announced, 07/16/2022, in a comment on the problems between the Iraqi Ministry of Oil and oil companies operating in the Kurdistan region, that these companies can file cases in international courts, and demand tens of billions in compensation from the government. Iraq, if the latter insists on its efforts to cancel its contracts in the Kurdistan region.

The company said in a statement, that taking into account the articles of the Iraqi constitution and the oil and gas law in the Kurdistan region, the file of oil companies operating in the Kurdistan region is strong, to the extent that it allows them to file cases against the Iraqi government.

In her comment, Gibson Dunn stressed that the Iraqi government will face major legal problems, and will have to pay billions of dollars in compensation.

The company added that the Kurdistan region is part of Iraq in all circumstances, and Iraq must abide by international laws, especially since the Iraqi Ministry of Oil has become a threat to the work environment of oil companies in the Kurdistan region.

The company indicated that the Iraqi Oil Ministry's steps contradict international laws and the decisions of the Organization of the Islamic Conference, of which Iraq is a member, stressing the need for the Iraqi government to commit to guaranteeing the rights of foreign investors.

The crisis over oil between the federal governments in Baghdad and the Kurdistan region reached advanced stages of complexity, with the Kurdish Judicial Council declaring the Federal Court unconstitutional. https://almasalah.com/archives/4026