• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 30 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 7 days America should go after China but it should be done in a wise way.
  • 3 hours Even Shell Agrees with Climate Change!
  • 2 days How Far Have We Really Gotten With Alternative Energy
  • 2 days World could get rid of Putin and Russia but nobody is bold enough
  • 3 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 5 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in

Breaking News:

OPEC Lifts Production in February

Anti-Oil Activists Shift Focus to Insurers

Anti-Oil Activists Shift Focus to Insurers

Activists have also started attacking…

Is This the Death of the American Penny?

Is This the Death of the American Penny?

Inflation has devalued the US…

Lower Oil Income Cuts Out US$9B From Iraq’s Forex Reserves

Persistently low oil prices have wiped out US$9 billion from Iraq’s foreign exchange reserves over the past 12 months. The current figure is US$50 billion, Iraqi media reported, quoting central bank chief Ali al-Alak.

One of OPEC’s biggest producers has been sweating it under the combined load of the war against the Islamic State and the oil price rout, which saddled it with a budget deficit estimate for this year of around US$25.81 billion. Prime Minister Haider al-Abadi said yesterday that this figure should shrink by 38 percent in 2017 thanks to a combination of public spending cuts and higher oil exports.

Earlier this year, Baghdad agreed a lifeline of US$5.4 billion with the IMF, to fund its war effort and plug the lingering budget hole until oil prices recover. The three-year loan, like all IMF loans, envisages some spending cuts that were bound to be unpopular in an economy that is already running on fumes.

Luckily for Iraq, since the loan was agreed upon in May, oil prices have rebounded somewhat—but not enough. The country is ramping up its output anyway, in a bid to raise its exports, which are the single vital contributor to the public coffers. This is a double-edged sword, however, as more output means lower prices, but Iraq has no real alternative within its reach.

Last month, according to a Reuters survey, Iraq marketed 4.43 million bpd, after it struck a deal with the Kurdistan Autonomous Government to restart shipments from Kirkuk. This boosted OPEC’s overall to 33.6 million bpd.

In this environment, the preliminary agreement on a production cap came just in time, but Iraq, plagued by its continuing money problems, was quick to voice doubts about the manner in which OPEC members’ individual output quotas will be agreed. Such doubts, if they spread across other members of the organization, could shatter the prospects of a freeze.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News