More News, Rumors and Opinions Wed.PM 3-26-2025

27/03/2025

Clare: The Minister of Planning announces the completion of the preparation of the budget tables and their submission to the Council of Ministers.

3/26/2025

Minister of Planning, Mohammed Tamim, announced today, Wednesday, the completion of the 2025 budget tables and their submission to the Council of Ministers.

Tamim said in a press statement, “The budget schedules do not include any new projects, but they do include funding for ongoing projects.”

For his part, Chairman of the Parliamentary Finance Committee, Atwan Al-Atwani, said, “We are determined to activate the General Authority for Monitoring the Allocation of Federal Revenues.” LINK

Clare: Iraq has the fourth largest oil reserves in the world.

3/26/2025 – Baghdad

State Oil Marketing Organization (SOMO) highlighted the importance of Iraqi oil and its vital role in global markets on Wednesday, noting that Iraq possesses the fourth-largest proven oil reserves in the world, at approximately 145 billion barrels.

The company said: “The promotion and sale of Iraqi crude oil is taking place in the three main markets (the Asian market, the European market, and the American market), in addition to the African market, by participating in international forums and conferences and holding meetings with major international companies directly or through the official website for online participation, in addition to inviting and providing the opportunity for major international companies, under announced conditions and within the established contexts, to participate in spot cargo auctions (Spot Cargo), which has worked to attract many international companies to be permanent customers for purchasing Iraqi crude oil, while emphasizing that the marketing strategy followed is to focus on markets that offer the highest returns and the best stability of demand, with flexibility in directing shipments according to global price changes to the rest of the markets to export the full available quantities of Iraqi crude oil.”

Regarding the advantages of Iraqi oil, SOMO confirmed that “global crude oils are classified and their quality is determined based on their API (specific gravity) and sulfur content. Iraqi crude oil produced on this basis is classified into (medium and heavy crude oil) based on its specific gravity. It has a high sulfur content for both types, according to the sulfur content standard. It is considered a crude oil with specifications (required globally), and is compatible with the operational plans of refineries that wish to produce specific products according to their needs.”

She explained that “among the advantages that help attract buyers are the significant and growing demand for medium and heavy crude oils, stable production, and the availability of large, stable quantities that ensure long-term supply contracts for these refineries. The geographic location and low shipping costs make Iraqi oil a favorite in the Asian market, in addition to the fair, competitive price based on market fundamentals.”

She pointed out that “an increase in the API (specific gravity) means the possibility of producing larger quantities of light products with a higher price value compared to heavy products, while the higher the sulfur content in crude oil, the less desirable it is to buyers because it requires higher costs to refine it.”

The company continued, “Iraq ranks fifth globally in oil production, with an output of approximately 4.27 million barrels per day, making it the second-largest producer in OPEC after Saudi Arabia. Iraq also has the fourth-largest proven oil reserves in the world, at approximately 145 billion barrels.”

She pointed out that “this ranking reflects Iraq’s vital role in global oil markets, as it contributes significantly to meeting global energy demand. Marketing-wise, Iraqi crude oil is considered an important oil with a good market reputation, as it is relied upon by many international refineries in their refining operations and is in relatively high demand.”

She added, “Iraqi crude oil is in global demand for refineries in several countries, as Iraqi crude oil is exported exclusively to companies that own refineries, but most of the companies to which Iraqi crude oil is exported are Asian companies, the most important of which are China and India, at a rate of approximately 70%, and approximately 30% for the other two markets, European and American combined.”

She explained that “the Oil Marketing Company adopts a clear strategy in accordance with the best marketing principles adopted globally through the principle of transparency and clarity in dealing with international companies specialized in the field of oil. It also adopts medium and long-term contracts to ensure the marketing of crude oil with the best return, achieving the interest of the country, which depends on more than (90%) of its budget financing on the revenues achieved by the Oil Marketing Company.”

She stated that “the Oil Marketing Company also adopts the export of products such as naphtha, fuel oil, jet fuel, sulfur and any other surplus products beyond local needs, while the imports of these products vary according to the quantities and types available for export. The production costs borne by companies investing in Iraqi oil fields can indirectly affect the global prices of Iraqi oil, as the price of Iraqi crude oil depends on market factors such as supply and demand. Production costs affect Iraq’s profit margins and its investments in oil, but global prices are determined more by supply and demand factors, competition, OPEC+ policies in some cases, and others. If costs rise significantly and affect Iraq’s production capacity, it may lead to higher oil prices due to a shortage in supply.”

Regarding the difference in selling prices for Iraqi oil compared to Brent crude prices, the company said: “Iraqi crude oil is sold at a higher or lower price than Brent crude, due to differences in quality, specifications, shipping costs, infrastructure challenges, and competitive pricing policy. However, it varies according to global market conditions, as Brent crude oil is the benchmark used in the European market. There are also other oils that differ from Brent crude oil, such as Dubai + Oman crude oil for the Asian market and the ASCI sour crude oil index in the US market.”

She added, “OPEC and OPEC+ policies determine production levels, which are reflected in global prices, impacting the buying and selling of Iraqi crude oil. The greater the production restrictions, the higher the prices, but the lower the quantities sold, and vice versa. These policies also impact its market share and financial returns.” LINK

Courtesy of Dinar Guru: https://www.dinarguru.com/

Militia Man We haven’t heard anything about the oil running…It hasn’t started through the Cyan Port. Salaries haven’t been completely 100% sorted, the ’23, ’24 budget schedules haven’t been exposed and they haven’t gone to the parliament yet. But now parliament is pushing for that to happen. What are they waiting for? They’re waiting for an exchange rate…

Frank26 Article: “Blessed by Tehran, a ‘framework’ agreement to protect American interests and prohibit unilateral military support for Palestine.” Article quote: “The main forces within the Coordination Framework…reached an agreement to remove the Popular Mobilization Forces from the political file, in addition to merging all factions within the Popular Mobilization Forces Authority. The agreement stipulates that all Popular Mobilization Forces…are subject to the orders of the Commander-in-Chief of the Armed Forces only, and that no party may act outside the framework of official military orders under any name or reason…noting that Tehran, which is the supporter of the axis of resistance, has supported this” Is this for real? Because if this if for real…we now have security and stability!

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