Currency and Oil

Turkey would like to increase the flow of Iraqi crude to more than one million barrels per day
Monday 18 May 2015 13:10
Alsumaria News / Baghdad
Said Turkish Energy Minister Taner Yildiz , Monday, that his country is willing to increase Iraqi crude flow to more than one million barrels per day, stressing that the crude flows through the Kurdistan pipeline Iraq that transports crude Kirkuk crude Kurdish to the Mediterranean coast, rose to 650 thousand barrels per day.

Yildiz said in a statement carried by "agency Reuters "and seen by Alsumaria News," The crude flows from northern Iraq rose in March 2014 of 2,300 barrels per day to Turkey to 650 thousand barrels per day, "stressing that" the goal is to exceed one million barrels per day, it will help Iraq's oil exports raised from the current 2.7 million barrels. "

Under an agreement concluded last December between Kurdistan and the central government in Baghdad, the Kurds vowed to export 550 thousand barrels per day on average through the Turkish port of Ceyhan through the Iraqi oil marketing company "Sumo" in 2015 in exchange for the resumption of budgetary payments.

And halted oil exports from the Kirkuk field in Iraq through the port of Ceyhan for months over the past year when he was the line which is controlled by the central government under attack from Islamic militants to organize the state.





Iraqi Oil confirms increase cash reserves by increasing sales for the month of May

Editor Alaa Hassan - Sunday 17 May 2015 17:17

Alsumaria News / Baghdad
The Ministry of Oil, Sunday, that the increase in sales for the month of May contributed to an increase of Iraqi cash reserves, indicating that the policy was followed by the "quality" The reason for this shift.

Media advisor to the Minister of Oil Ahmed said al-Saadi said in a statement Alsumaria News received a copy of it, that "sales increase for the month of May contributed to an increase of Iraqi cash reserves."

Saadi added that "the increased prices and rising exports constitute the backbone to increase the cash reserve", adding that "this increase will contribute to the completion of Iraqis expected."

He stressed that "the policy pursued by the Oil Ministry to intensify efforts to expand production and increase the volume of exports of successful management in record time was the reason for this paradigm shift."

The Oil Minister Adel Abdul-Mahdi , announced, in (3 May 2015) that Iraq's oil exports for the month of April amounted to 92 million and 800 thousand barrels, in what was considered that Iraq still faces some problems require everyone to be addressed to protect the foundation set for the country.


Appearance Fit: OPEC ended, Iraq is obliged to develop and 500 rackets manipulating Dinars

Published on Wednesday, April 1 / April 2015 09:16
Written by: Laith Mohammed Reza

Interviewed by: Laith Mohammed Reza

BAGHDAD / Center Brief for the Iraqi Media Network (IMN) - Economic Adviser to the Prime Minister stressed the appearance of Mohammed Saleh, said that OPEC ended historically and lost influence his estimation, leaving them only club meeting and speeches, after the inability of her large Ktktl for oil-exporting countries, to cut production about the low oil prices, no longer lead responsibility to increase its revenues from the sale of oil in the world market, pointing out that the influence of oil prices moved control of the Organization of Petroleum Exporting to the United States and allied with them in this economic profile.

While he said that Iraq is obliged to economic development and revitalization of the productive sectors in the light of the lack of income due to lower oil prices, having caused enormous revenues obtained in previous years numbingly will of development, adding that the current quest for the prime minister is not to exceed the company's incorporation process, the duration of 15 minutes after the simplification of procedures.

Saleh warned in an extended interview with the Center Brief, that speculators are not the more than 500 people only benefit from the presence of two prices for currency exchange, one official and the other in the market, while the government is losing in this case, they sell cheap dollars of the Central Bank, the central bank also loses sell cheap dollars to banks, and that the average citizen loses, because the rise of the dollar is reflected in the prices of goods and services, Fetlat national parties lose here for the profit of a small group of speculators.

Economic Adviser to the Prime Minister's (IMN) "The political program of the government of al-Abadi was built on the complex legacy of the economy distorted features ideology, in the central regime love Blabralah new large country with a disruption of the production, however, this program has a responsibility to be a framework for the future of the Iraqi economy." .

He pointed out that "the Prime Minister show the interest and desire great to bring something to the economy of the country, and this is an important political will to build economic change," explaining that "the government's move towards a market economy based for political self-reliance through the revitalization of the private sector with a social market, which will create a new Iraq ".

And between Saleh said that "the development of the private sector launched by the Prime Minister, the first clear long-term economic strategy, because the previous eras witnessed the presence of the Department of Planning long-term remained neglected strategy, but today in front of a serious strategy extends from 2014 to 2030 and spread over three phases, aims to the market to take a productive activity in the last phase, so that the private sector's contribution to GDP of not less than 50% with oil, and now stands at 37%, but we seek to tip the private sector. "

"We started to activate the first phase of the development of the private sector, which will continue until 2017 strategy, which is related to the role of the government in making the transition to encourage the private sector and to highlight the role and the transfer of productive activity to the state."

Saleh said that "the basis to go to Iraq is to stimulate production under disable it, since there are 157 state-owned General, where half a million member 0.44 of which only the company profitable, and the rest is lost, and will assess each company adopts a special method for restructuring, but we must make them work according to the principles of competitive market and turns of the blocking pattern into a productive pattern effectively and efficiently, "adding that" Iraq is trying to keep up with the approach of the developed world, which attaches importance to small and medium enterprises, which account for 70% of economic activity in Germany, as well as representing a significant share in Japan, the state will provide funding to encourage Small and medium-sized enterprises and even large in some cases. "

Saleh said, "We need to address the dispersion in currently the labor market to find assurance in retirement in the Labour Fund to every Iraqi in the working age, according to the contribution and productivity but no minimum to provide the minimum that deserves any citizen does not work," noting that "the state can not afford to appoint four and a half million workers who work in the private sector to move to the public sector, joining the unemployment disguised in state institutions, because this will lead to further disruption of the capabilities of the Iraqi people, and we should stop encouraging consumer segments unproductive called employees in the state. "

Turning to that, "There is a look hostile to the private sector impede the transition to a market that requires sacrifices and openness and challenge concerns the economy, and overcome the legacy of the irenic on the private sector, and here the government is committed to the development of the promotion of real individual initiatives to increase market efficiency standards and not to create monopolized or speculators, with production processes have ability to operate and raise the accumulation and economic growth. "

Saleh added that "the government will provide soft loans for the grant shall be a large element in terms of extended repayment and interest rates, to encourage private initiatives, especially among young people who take the initiative to create added value for himself, if that facilitate business starts from the availability of the founding of the company as a legal entity or personal moral but not limited" .

In response to a question Center Brief about the likelihood of the government's fiscal expansion, said, "The government has not been in existence is six months, and has faced significant challenges, the first decline in resources in our country because of Osarr oil, where tax collection exceeds 1% of GDP, and we build tax system discreet reconciles encourage production and tax collection, not exaggerate the tax expansion in the absence of production, but keep the tax base as well as accurately choose tax charge higher resolution, because our main concern is to encourage the production base. "

With regard to the agricultural sector Saleh said that "the government bound to create a major agricultural projects will be the interlocutor plant and animal production, I do not mind to be held in collaboration with foreign investment since there are important experiences of some countries in this area," adding that "agricultural initiative is good and will take the starting point of the new strategy Agriculture within stimulate the private sector, but we need to adjust the initiative mentioned mechanisms, for example, the state is no longer willing to give loans to farmers and fictitious taking out loans but not Anmoha exploit for consumption. "

Speaking about monetary policy that "the auction Central Bank foreign currency, testifies request pressure has not decreased compared to previous years, despite a decline in the ability to provide the required foreign currency supply, the open former size keeps the numeric stability of foreign currency sales, but Sistnzv Bank reserves Central of the dollar and the dinar pull from the market, leading to a recession. "

The benefit of "come for us to face the demand logic of the display to get to the fair value of the dinar against the dollar, and this idea was the substance of the real action in the text of Article 50 of the financial budget for the current Act, which restricted the central bank not to sell more than $ 75 million in currency auction per day, while already sold about 250 million daily states, "adding that" oil is the source of dollars sold by the central bank, and it is logical that the dollar sell when the price of a barrel of about $ 50 for the same price when we sell a barrel of oil dollars B103. "

He stressed that he "should maintain cash reserves of hard days and more control over liquidity ratios, it is true that sit back to the fact that every Iraqi dinars covered in foreign currency and a half times or more by the Central Bank of Iraq, because this coverage may be L78 billion may be to 20 billion, and the amount of reserves is important also not enough the value of coverage. "

Saleh praised the "stimulus package adopted by the Central Bank of Iraq's economy, which has been successful and effective to address the scarcity of liquidity, where the Bank has provided five trillion dinars in deposits in specialized banks that lend citizens in the private sector to support small and medium enterprises, especially in the field of housing, agriculture, and the central bank gets simple interest paid on this deposit, but the real profit in achieving stability, which is one of the duties of the bank, as it is responsible for the fight against inflation is responsible for combating the recession, both because the case does not stabilize and the central bank is responsible for stimulating the economy and support stability. "

He explained that "the central bank used the secondary market tools when replaced about 6 trillion dinars from remittances treasury unpaid by the government for banks, bought bonds and gave the money became a public liquidity, and to facilitate this procedure is similar to a Federal Reserve Bank Alomerreqi."

"The legal mandatory deposits by 15% deposited by banks at the central bank, central attributed half of which is estimated at about 5 trillion dinars and got remittances treasury them, and also became a public liquidity at banks," pointing out that "monetary policy claim with the help of banks and strongly supported as supervised it strongly, as Bantrza should be a last resort lending, which prevents bank failures, but now the first to borrow the modern history since 2003, says that the central bank is to borrow from the banks. "

Regarding the future of shale oil after its effects on world market prices Saleh said he was "still limited fortunes, and a reserve for deferred blacks days and maneuvers cartel and the United States control of the oil price."

And that "shale oil inventories enough current global consumption for 300 years, and the continent of North America has a huge store of it, especially the United States and Canada, but oil shale dry and convert it to liquid form requires injection of warm water with chemicals fields, and that the age of the well shale oil three years, after which requires drilling another within the field, so the average cost of producing a barrel of oil shale progress at about $ 68 a barrel as conventional oil cost of eight ranging to $ 18, and the shale production harms the environment more than the traditional 50%. " .

Saleh said that "only the United States today is the largest importer of oil in the world at about nine million barrels, the world's largest consumer of about 19 ​​million barrels, and despite the fact that the volume of oil production is officially known, but I appreciate it a total of 18 million barrels, and this will be the largest producer the world at the same time, it is also stored continuously produce the equivalent of 22 days, the US Agency for Energy oversees all oil companies as it is part of the national security strategies a superpower I must respect tighten control over their economic security. "

Photograph: Ali Gharbaoui


Iraq Aims to Increase Oil Output

Posted on 29 March 2013. 

Iraq Aims to Increase Oil Output

By Omar al-Shaher for Al-Monitor. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

The Iraqi Oil Ministry has said that the country’s export capacity will reach 7 million barrels per day by 2015, while the parliamentary Energy Committee believes that the size of Iraq’s oil exporting capacity is still below the upper limit set by the Organization of Petroleum Exporting Countries (OPEC).

Abdul Mahdi al-Amidi, a senior official in the Iraqi Oil Ministry, said that his country will be able to export more than 7 million barrels a day in 2015, after construction is completed on offshore rigs at the end of this year. Amidi said that the oil ministry would be able to deal with these quantities for transfer and export.

Amidi said that the production and export of crude oil is subject to the ministry’s plans and programs, which, in turn, are subject to a number of variables. He added, “The ministry is working to develop the necessary infrastructure to help them transport, store and export crude oil.”

There is much uncertainty surrounding Iraq’s export potential, while local experts believe that the country will not be able to cope with the large increase in oil production that is expected over the next two years.

Many of Iraq’s plans to build offshore rigs in the Persian Gulf — along with projects aimed at laying new pipelines to export outlets in Turkey and Jordan — have been at a standstill for years as a result of bureaucracy.

Amidi said that the doubts concerning Iraq’s ability to export projected production quantities are “inaccurate.” He added, “The indicators announced by international organizations draw their information from the Ministry of Oil and the official Iraqi authorities.”

Iraqi Oil Minister Abdul Karim Luaibi said, “Iraq is confident of its ability to export all projected increases in production this year.”

Since 2010, Iraq has signed many contracts with international companies to develop a number of oil fields, and has previously announced its intent to produce 6 million barrels of oil per day by 2017. These contracts have pushed the Iraqi Oil Ministry to implement a plan aimed at increasing the country’s export capabilities. The first stages of this plan involve projects to build new pump tanks at the coastal warehouse in Faw, and to extend two pipelines including 20 km [12 miles] on land and 120 km [75 miles] under water. Once these pipelines have been completed, they will be linked to three offshore rigs.

In October 2011, the state-owned South Oil Co. signed billion dollar contracts with two companies — one Australian and the other Italian — to install two offshore rigs, lay an underwater oil transport pipeline, and erect a platform for valves and meters. These contracts came in light of an expected increased in Iraq’s export potential through the Gulf to 6 million barrels a day after three years.

The parliamentary Energy Committee believes that the amount of oil the country exports is still less than the upper limit set by OPEC, and that Iraq is capable of increasing its exports in the future.

Susan Saad, a member of this committee, said, “Iraq has not reached the upper limit for export set by OPEC, which is designed to balance supply and demand in world markets.”

She added that Iraq could receive special exceptions to raise export capacity as it deems appropriate, given the country’s need for oil revenue.

Omar al-Shaher is a contributor to Al-Monitor’s Iraq Pulse. His writing has appeared in a wide range of publications including France’s LeMonde, the Iraqi Alesbuyia magazine, Egypt’s Al-Ahaly and the Elaph website. He previously worked for Al-Mada covering political and security affairs and as a correspondent for the Kuwaiti Awan newspaper in Baghdad in 2008-10.

If you think that oil exports have to do with the value of a countries exchange rate, take a look at these!

The shape of their economy makes all the difference in the world. Look at Russia, the number two biggest oil producer and their exchange rate is low. Then look at Venezuela at number 13th and their exchange rate is outstanding!

Ranking     Country                                         Barrels Per Day                   Exchange Rate to the USD
1	Saudi Arabia	        10,520,000       0.26660 
2 Russia 10,130,000 30.9624
3 United States 9,688,000 1.00
4 China 4,273,000 6.35073
5 Iran 4,252,000 10,726
6 Canada 3,483,000 0.96819
7 Mexico 2,983,000 13.8533
8 United Arab Emirates 2,813,000 0.27218
9 Brazil 2,746,000 0.55617
10 Nigeria 2,458,000 157.221
11 Kuwait 2,450,000 0.27574
12 Iraq 2,408,000 1,151.41
13 Venezuela 2,375,000 0.23257
14 European Union 2,276,000 0.74086
15 Norway 2,134,000 0.17236