Oil prices rise as Opec+ panel recommends 2mn barrel cut

Oil prices rise as Opec+ panel recommends 2mn barrel cut

kurdsatnews

Oct 5, 2022

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A panel of OPEC ministers recommended a 2 million reduction in daily production from current quotas. That would put OPEC in conflict with the US government after President Joe Biden pushed for higher oil production amid concerns over rising US gasoline prices before congressional elections scheduled for November.

On a historic trip to Saudi Arabia, US President Joe Biden could not convince the Saudi monarchs to increase production and reduce prices. Following his visit, oil prices have only increased.

According to the Financial Times, if agreed to, a cut of that size would probably boost oil prices but risk angering the US and other western countries already battling an energy crisis and the risk of recession.

According to multiple sources close to the discussions, Saudi Arabia has aligned with Russia in supporting a large supply cut after oil prices slipped over the last quarter to around $90 a barrel from $120 in early June, the UK-based paper reported.

Weak oil prices are one of the main reasons driving the push for a 2-million-barrel daily production. It has been caused by a darkening economic outlook, depressing demand for crude oil and bringing down the prices.

European countries desperately need alternative energy sources following the war in Ukraine. Russia has used its energy as a counterattack to western sanctions on Moscow that have made the lives of ordinary Russians more challenging and increased pressure on Putin.

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Erbil-Baghdad talks on KRG budget share continue without a foreseeable deal

Three sources familiar with Erbil-Baghdad talks in Baghdad told KurdSat that the Kurdistan Regional Government (KRG) delegation will return to Baghdad today and a number of directors general of the Ministry of Finance and the Financial Supervision Bureau will accompany the delegation.

The delgation will discuss the report prepared by the Iraqi Financial Supervision Bureau on the audit of revenues and expenditures of the Kurdistan region, the sources explained.

The delegation wants to get a final say from Baghdad on whether it will spend the entire share of the region or an amount of money as a loan, as in the previous months. According to the sources, the Kurdistan region and Baghdad have not yet reached a conclusive agreement.

The Iraqi government has demanded the handover of 400,000 barrels of oil and non-oil revenues from the federal region, but the Kurdistan region has handed over only 55,000 barrels.

Baghdad also demands that all non-oil revenues be handed over and then 50% of the non-oil revenues will be sent back to the Kurdistan region.

The KRG delegation visited Baghdadi last week and held several meetings with the relevant federal government departments regarding the sending of the Kurdistan Region's share of the budget. However, it is not clear when the share will be sent.

The Kurdistan region depends almost entirely on its budget share to fund the region’s expenditures and paying its employees, however Baghdad has cut off the region’s budget share since 2014 and occasionally sends only a portion of the region's financial share and entitlements.

Equipment of Iraq’s largest oil refinery was stolen, found in the Kurdistan region

The Ministry of Oil said in a statement that the return of equipment and materials of the Beji refinery was based on the assistance of a loyal citizen and through several official and unofficial contacts, despite the efforts of the relevant parties.

The ministry added that the equipment and materials that were taken to several warehouses in the Kurdistan region and several places were distributed and identifying them was a difficult process.

The process of returning the equipment was after the citizen contacted the Oil and Energy Committee of the House of Representatives and the chairman of the committee who expressed his willingness to return them, some of which are not used, the statement noted.

The oil ministry said the equipment was returned in cooperation with the Kurdistan Regional Government (KRG) without any charges.

Iraqi Ministry of Electricity announces increase in electricity production

Electricity Minister Ziad Ali said in a statement that Iraq's electricity production has risen to 23,509 MW and added that they are waiting for the increase in gas imports and with the increase in gas imports, the hours of electricity supply to citizens will increase. Referring to the plan to import more natural gas from Iran.

The minister noted that the contracts with Total and Albela will provide about 2,000 megawatts of electricity.

The minister's statement comes as Iraq's electricity supply has been reduced in recent days due to the suspension of gas imports from Iran. The Iraqi government has decided to export crude oil and crude oil to Iran in exchange for importing gas.

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Erbil-Baghdad talks on KRG budget share continue without a foreseeable deal

Three sources familiar with Erbil-Baghdad talks in Baghdad told KurdSat that the Kurdistan Regional Government (KRG) delegation will return to Baghdad today and a number of directors general of the Ministry of Finance and the Financial Supervision Bureau will accompany the delegation.

The delgation will discuss the report prepared by the Iraqi Financial Supervision Bureau on the audit of revenues and expenditures of the Kurdistan region, the sources explained.

The delegation wants to get a final say from Baghdad on whether it will spend the entire share of the region or an amount of money as a loan, as in the previous months. According to the sources, the Kurdistan region and Baghdad have not yet reached a conclusive agreement.

The Iraqi government has demanded the handover of 400,000 barrels of oil and non-oil revenues from the federal region, but the Kurdistan region has handed over only 55,000 barrels.

Baghdad also demands that all non-oil revenues be handed over and then 50% of the non-oil revenues will be sent back to the Kurdistan region.

The KRG delegation visited Baghdadi last week and held several meetings with the relevant federal government departments regarding the sending of the Kurdistan Region's share of the budget. However, it is not clear when the share will be sent.

The Kurdistan region depends almost entirely on its budget share to fund the region’s expenditures and paying its employees, however Baghdad has cut off the region’s budget share since 2014 and occasionally sends only a portion of the region's financial share and entitlements.

Equipment of Iraq’s largest oil refinery was stolen, found in the Kurdistan region

The Ministry of Oil said in a statement that the return of equipment and materials of the Beji refinery was based on the assistance of a loyal citizen and through several official and unofficial contacts, despite the efforts of the relevant parties.

The ministry added that the equipment and materials that were taken to several warehouses in the Kurdistan region and several places were distributed and identifying them was a difficult process.

The process of returning the equipment was after the citizen contacted the Oil and Energy Committee of the House of Representatives and the chairman of the committee who expressed his willingness to return them, some of which are not used, the statement noted.

The oil ministry said the equipment was returned in cooperation with the Kurdistan Regional Government (KRG) without any charges.

Coordination framework to name prime minister soon

Ali Fatlawi, a leader of the Coordination Framework, told the Iraqi media that the Coordination Framework continues its meetings to resolve the issue of the new Iraqi government as soon as possible.

He added that the coordination framework will hold a special meeting tomorrow or the day after to appoint a person for the post of prime minister.

Fatlawi said the appointment of the new prime minister will be in consultation with all forces and leaders within the Coordination, without marginalizing any side.