OPEC OIL PRICE IS WAAAAY DOWN

[KristiD]

I know all oil prices are down, but what's going on with OPEC?!  Iraq is a member of OPEC although I believe they are still allowed to sell more than there quota right now.  The OPEC price has dropped almost 20% in the last 3 days and now is at $47.  If Iraq is selling its oil at OPEC prices, they are seriously hurting since their breakeven is about $58.  https://oilprice.com/oil-price-charts/29

I sure hope Breitling is correct in that low oil prices will push Iraq to RV because adding value to their currency is the easiest way for them to make up that loss.

 

 

[Synopsis]

Just now, KristiD said:

I sure hope Breitling is correct in that low oil prices will push Iraq to RV because adding value to their currency is the easiest way for them to make up that loss.

 

 You Go, GIRL!!!, KristiD, AND ALL The Very Best!!! 

 

Kwinkie Dinkie on the timing corresponding with the newly appointed Bicraqi Iraqi Prime Sinister, er, Minister!!!

 

Pressure???!!!

 

The HEAT is ON -IT'S ON THE STREET???!!!

 

 

Hey, the Beverly Hills Cops, er, Detroit Cop WILL get 'em!!!

 

Go Moola Nova!

[Theseus]

I sure hope Breitling is correct in that low oil prices will push Iraq to RV because adding value to their currency is the easiest way for them to make up that loss.

The problem with this mindset is that this mindset was the same when oil was well over 90 USD per barrel and when the price per barrel was down in the mid-twenties. We have seen both extremes in this up and down roller coaster ride and the Iraqis were not pushed into an RV. Why? Because in order for Iraq to RV they have to be given the green light to do so. Yes, I know what others have said as far as only Iraq knows and only Iraq can RV its currency; however, Iraq has been getting outside help and actively seeking it all the while its leaders have been working against that advice it has sought. Albeit, there has been progress in this arena but if you point a horse towards the ocean it will eventually come to the ocean no matter how far away it is. The IQD will need to be reinstated onto the world market before it goes through an RV. In order for this to happen, the IMF has to okay Iraq's ascension into Article VIII. Until the IMF signs off on Article VIII - basically the reinstatement of the IQD onto the world market -  there will be no RV. For one, this means long and short term investment opportunities for those outside and inside of Iraq in something other than IQD. Its been said Iraq is a rich country as a whole but they act like they are a third-world country not a developing country.  No RV will happen until the IMF gives the okay no matter the price of oil because we have been there done that. 

[siberian_shaddow]

Agreed Theseus, Irag is not alone in the RI or RV. There are other entity's involved, everyone needs to have hands on deck and agree including  finalizing the HCL, which if the Kurds continue to agree to there percentage. It wouldn't take much to finish that part. Its all about timing, they only have one shot at this. And they need to get it correct. 

[Theseus]

11 hours ago, siberian_shaddow said:

Agreed Theseus, Irag is not alone in the RI or RV. There are other entity's involved, everyone needs to have hands on deck and agree including  finalizing the HCL, which if the Kurds continue to agree to there percentage. It wouldn't take much to finish that part. Its all about timing, they only have one shot at this. And they need to get it correct. 

Just passing the HCL will not trigger the RV. IMF will want to see implementation of profit sharing before they give the okay. In many senses, the oil profit is not the issue. What is at issue is the non-oil sector contribution to Iraq's GDP. This leads to more diversity of the economy and with it falling to below 2 percent when it should be well above 8 percent by now is one of the fundamental issues. Something that has been pointed out to Iraq time and time again. Investment opportunity, agriculture sector, manufacturing sector, power production, education the banking sector lending and it not being inept, corruption, the state of arrears etc. are more at the issue of getting Iraq to RV than the HCL.