TNT – “Tidbits From TNT” Wednesday 5-29-2024


CandyKisses:  Oil rises amid expectations of major producers maintaining production cuts

Economy News _ Baghdad

Oil prices rose in Asian trading on Wednesday amid expectations that major producers will maintain production cuts at Sunday’s meeting, and that fuel consumption should start rising at the start of the peak demand season in the summer.

Brent crude futures for July delivery rose 15 cents, or 0.2 percent, to $84.37 a barrel by 0304 GMT. U.S. West Texas Intermediate crude futures for July rose 25 cents, or 0.3%, to $80.08.

Both benchmark crudes rose more than 1% the previous day.

Traders and analysts expect the Organization of the Petroleum Exporting Countries and its allies including Russia, known as the OPEC+ group, to maintain voluntary production cuts totaling about 2.2 million bpd.

Monday’s Memorial Day holiday marks the start of peak demand in the United States, the world’s biggest oil consumer, and maintaining production cuts would keep prices supported as consumption rises.

Increased fighting in the Gaza Strip as Israeli tanks advance into the heart of the Rafah Strip has also provided some price support amid fears that the conflict could spill over into the greater Middle East, the main supply area.

Investors are also awaiting U.S. crude inventories data from the American Petroleum Institute, which will be released later in the day. The release of the data was delayed by a day due to the Memorial Day holiday on Monday.

A preliminary Reuters poll on Tuesday showed U.S. crude oil inventories were expected to fall by about 1.9 million barrels last week.

Investors are also awaiting US inflation data this week which could weigh on expectations of a rate cut from the Federal Reserve and weigh on oil prices.

The US Core Personal Consumption Expenditure Price Index (PCI) report for April is due on Friday. The Fed’s preferred inflation gauge is expected to remain flat on a monthly basis.

Expectations about the timing of the rate cut have fluctuated, with policymakers concerned as the data still reflects flat inflation


CandyKisses: Al-Sudani chairs the second meeting on the follow-up of agreements and memoranda concluded with Turkey

Baghdad / Nina / Prime Minister Mohammed Shia Al-Sudani chaired the second meeting on the follow-up of agreements and memoranda concluded with Turkey, during the recent visit of the Turkish President to Iraq.


CandyKisses:  Good news regarding the federal budget

Shafaq News / The coordination framework held a meeting on Tuesday  in the presence of Prime Minister Mohamed Shia Al-Sudani.

A statement after the meeting said that the meeting deliberated on the financial budget tables and stressed the need to approve them to achieve the interests of citizens and support the economic situation.

The meeting also stressed the importance of proceeding with the election of the Speaker of the House of Representatives as soon as possible.

A political source revealed to Shafaq News Agency on Monday that the reason for the meeting is due to objections to the budget tables sent by the Iraqi government, by the framework forces and refused to pass them in their current form.

The government had sent the budget tables to parliament for a vote after a delay of more than five months as a result of technical problems centered on the size of the deficit, and the government’s attempts to reduce it.

There was controversy over the budget tables after allocating an investment budget to the provinces amounting to 41 trillion Iraqi dinars, which some saw as unfair to the provinces by reducing their quotas in exchange for increasing the Kurdistan Region’s share of 4 trillion, which the government denied.

The 2024 budget, according to Prime Minister Mohamed Shia Al-Sudani, is 211 trillion dinars, and the salaries of employees for the year 2024 amount to 62 trillion dinars, while the budget for 2023 was 199 trillion dinars and the salaries of employees 59 trillion dinars.

The revenues of the 2024 budget are estimated at 144 trillion and 336 billion dinars, while expenditures amount to 210 trillion and 936 billion dinars, while the deficit is 63 trillion and 599 billion dinars 


Tishwash:  Parliamentary Finance announces the necessity of maintaining the economic foundations in the budget

The Finance Committee, headed by Engineer Atwan Al-Atwani, held its fifth meeting dedicated to discussing the general budget schedules for the year 2024.

The Chairman of the Committee stressed the necessity of conducting a comprehensive review, reconsidering the components of the budget, and studying the schedules in detail in order to find a clear vision, in addition to the importance of considering the entitlements of governorate projects compared to project allocations. Ministries, noting that the current financial allocations end at the end of the fiscal year.

The members stressed the importance of supporting the government in implementing its program aimed at providing services in all regions, taking into account supporting the governorates in strategic and infrastructure projects. 

The committee discussed the possibility of making the necessary transfers and their impact on the sectors in a productive manner, while drawing a clear vision in accordance with the requirements of the public interest and reducing the deficit by rationalizing spending and supporting important sectors such as education and health, while paying attention to supporting the private sector.

It was emphasized that the economic foundations in the budget must be maintained, the philosophy of maximizing imports and enhancing exports, building decisions according to a clear vision while taking into account their positive repercussions, and emphasizing the completion of government projects that contribute to serving the citizen.