Parliamentary Crisis: There Is No Legal Objection To Sending The Budget To Parliament To Confront Corona !

[Stabstones]

7 hours ago, DinarThug said:

Iraq is heading for reconsideration of economic and financial policies

Wednesday 01 April 2020

 

 

Baghdad / Omar Abdul Latif

 

 

The Finance Committee of the House of Representatives called for a review of the country's economic policy during the next stage and a reduction in dependence on oil. 

Committee member Dr. Ahmed Al-Saffar told Al-Sabah: “The government was planning to change the state’s general budget from items to goals, and its implementation should have started from this year in the education and health sectors, and then generalize it to other sectors.”

He added that «the current crisis requires reconsidering the financial and economic policy of the country and reducing dependence on oil as a unilateral source in financing the budget».

And Al-Saffar indicated that «the government should reduce the burden of the public sector and give its scope of participation by the private sector, and reduce through facilities and the issuance of laws and legislation that enable the private sector to do so as it exists in all countries of the world, when it manages the majority of the agricultural, industrial, health, transportation, transportation and education sectors Education under the supervision and control of the government in order not to be exploited Citizens.

Al-Saffar warned that Iraq is proceeding according to a dangerous policy through which the future can be unclear and catastrophic in the event that its dependence on oil as a primary source for financing the budget remains, since its prices are unstable and depend on international relations and supply and demand on the one hand, and it is a depleted commodity, and all reserves cannot be consumed It is located in the ground, being one of the share of future generations that must be disposed of Back then. ”

LINK

IMF and WB had told u not to relied on petrol dollar for last 10 years.. But well.. U all thief and full of s**t..

[screwball]

On 3/31/2020 at 6:30 AM, DinarThug said:

al-Zarfi will try, according to those close to him, to“ move the circulating cash block that is currently suspended due to the reluctance of citizens to deposit their money in banks due to their loss of confidence in government and private banks, as well as the approval of a new law that regulates and drives the work of the banking sector in the country 

On rate change and rv will do this!

[DinarThug]

LINK

Zain Cash launches the electronic wallet filling service through the two international MasterCard and Visa cards

 

 

1st April, 2020

 

Zain Cash is distinguished again by launching the first service of its kind in Iraq in the field of electronic financial transactions, as it launched the service of filling its electronic portfolio through any Master Card or Visa Card with ease, speed and safety.

This service will allow all card holders and account holders in banks the ability to perform many important digital services such as transferring money, paying bills and charging the balance in addition to providing them with the opportunity to purchase many international electronic cards such as Google Play, iTunes, Playstation and many others, and Zain Cash users will be able to From filling their portfolios starting from 250 dinars and up to a maximum of 500,000 dinars per movement with a free commission through the application at any time and any place without the need to make time and effort to go to the agent to deposit funds using any of the cards mentioned.

The launch of this service coincides with the continued spread of the Corona virus at the global and local levels, as Zain Cash strives to facilitate the financial dealings of citizens and a commitment to stay in their homes to preserve their health, as this service provides the mobilization of the wallet without the need to leave the house or make any effort in movement and Encouraging the use of an electronic wallet instead of cash to prevent infection.

The CEO of Zain Cash Iraq, Yazan Al-Tamimi, expressed his overwhelming happiness to launch this service that charts the beginning of a new stage in financial connectivity between banks and digital financial portfolios and keep pace with the development in the world of digital transactions and provide all advanced electronic financial services so that our valued customers in all governorates of Iraq will have the best experience Al-Tamimi added that this service is expected to attract many individuals and companies who are eagerly and eagerly awaiting this service for the time and effort it will save them, especially in the current period.

** Zain Cash from Zain is the electronic wallet that provides customers with the opportunity to convert cash to electronic money, which allows them to facilitate and electronic payment, when transferring money or paying bills, cash transactions, digital purchases and many other benefits and services, all through Mobile phone device. 

[DinarThug]

LINK

Central Bank: We have completed the delivery of salary amounts to all southern governorates

 

 

31st March, 2020
 

The Iraqi Central Bank announced the Basra branch, on Tuesday, to complete the process of providing funds in Basra and the southern governorates with funds for the purpose of distributing salaries.

The branch general manager, Qasim Raheef, said in a radio interview followed by Mawazine News, that they "completed the handing over of all amounts to the banks of Basra and the southern governorates since yesterday, indicating that the process was carried out smoothly due to their continuous work, by including them with the exception of imposing a curfew in the province."

And Raheef stated, "The staff time during the salaries delivery period was 100% due to the urgent need in that period and to complete all related matters." 

[DinarThug]

LINK

Parliamentary expectations that the government will borrow to cover the salaries of its employees

 

 

1st April, 2020

Expects a member of the Parliamentary Finance, Sherwan Mirza, on Wednesday, to direct the Iraqi government to borrow in order to provide two billion dollars to cover the salaries of its employees.

Mirza said, "Among the crises facing the Iraqi state is the drop in oil prices and its repercussions on the economy," believing that "the solution to this problem is closely related to overcoming the political crisis and the crisis of the Corona epidemic that affected the trade movement."

He added, "Overcoming this economic crisis in the long run requires finding alternative sources of oil to support the revenues of the Iraqi state, which depends on 93% on oil. As for the short term, it is assumed to reduce expenditures and go to internal borrowing from banks and from the central bank reserves."

The member of the Parliamentary Finance explained that "borrowing from the central bank reserves comes according to conditions regulated by the law of the Central Bank of Iraq and the World Bank," noting that "the lack of uniformity of these conditions will reduce the value of the Iraqi dinar."

He pointed out that "the central bank reserves exceeded seventy billion dollars", stressing that "the Iraqi government's need for two billion dollars added to oil revenues that amount to about one and a half and a half billion dollars a month to cover employee salaries and the operating budget." 

[DinarThug]

LINK

In the document .. the central bank places its hand on the bank of a member of Parliament

 

 

1st April, 2020

 

The Central Bank of Iraq decided to place its hand on the Islamic Al-Wifaq Bank (formerly Al-Rawahil), affiliated with Deputy Muthanna al-Samarrai. 
 

 

Translation....

 

To the Supreme Judicial Council Presidency of the Baghdad Appeal Court Rusafa Federal Court of Rusafa Investigation Court, which is concerned with issues of integrity, money laundering and economic crime, Baghdad Governorate. What has been resolved is a good living case, a reference to your book numbered by 80 and piety in 2010/3/30

We would like to inform you that relevant departments have been notified With this bank, with the deposit of the sums deposited with us, the purpose is to increase the capital of Al-Wafa Islamic Bank (formerly former) Sara 2020/1/1  which shows the amount of (eight billion Iraqi dinars) deposited in two installments and the reservation is made for the viewing with an estimate.

[DinarThug]

LINK

Parliamentary crisis issues several decisions, including the release of salaries for 67 thousand vulnerable families

 

 

 

1st April, 2020

 

The Parliament Crisis Cell issued, on Wednesday, several decisions regarding the emerging Corona virus in the country, while it agreed to release salaries for 67,000 vulnerable families.

 

The media office of the First Deputy Speaker of the House of Representatives, in a statement received by Mawazine News, said that "The Parliamentary Crisis Cell held the sixth meeting headed by Hassan Karim Al Kaabi, First Vice President of the House of Representatives, in the presence of the Chairman of the Security and Defense Committee, Mohammad Reza Al Haydar and Chairman of the Higher Education Committee Ghaida Kambash and all its members." 

 

The statement added, "The meeting was devoted to hosting the Minister of Labor and Social Affairs in the name of Abdul-Zaman, to discuss the urgent measures taken by the ministry to help the needy families and the owners of daily sustenance, and expedite the payment of social protection salaries to other eligible families."   Al-Kaabi agreed with the Minister of Labor to "release salaries for the 67 additional sixty seven thousand vulnerable families who were affected during the current circumstance, especially after the existence of adequate financial allocations to them by the ministry," calling on all ministries to "invest their available resources to relief the owners of daily sustenance and the vulnerable segments present in Across the country."  For her part, Majida Al-Tamimi, a member of the Finance Committee, presented "a review of a number of proposals to address the financial crisis and provide cash liquidity in the country, which is one of the most important challenges facing the achievement of food security for the citizen during the crisis of Corona." 

Al-Kaabi praised the role of the Ministry of Labor in assigning exceptional emergency cases in the country, calling for "the necessity of providing all kinds of support and synergy and coordination with social solidarity programs and the owners of donations that work together to overcome the crisis." He praised, "the contribution of the Iraqi Banks Association and the Iraqi and donor bodies present in China by donating to buy the necessary medical equipment and supplies."  And the cell decided, "to host the Ministers of Planning and Agriculture at a meeting tomorrow, Thursday," asking all parliamentary committees to "complete their urgent proposals to meet the financial challenge that is fully related to tackling the current crisis." 

[DinarThug]

LINK

Iraq plans to increase its oil production in April despite the saturation of the market

 

 

 

01/4/2020 09:19:28

 

 

An informed source said that Iraq, which is the second largest oil producer in the "OPEC", plans to increase production in the month of April, in the oil markets already saturated by the significant decline in demand due to the outbreak of the Corona virus.

And the American "Bloomberg" website quoted the source, who asked not to be named, as saying in press statements yesterday, Tuesday, that although many countries have taken measures to combat the emerging Corona virus, in addition to the intense competition between Saudi Arabia and Russia, Iraq plans to increase production by about 200 Thousand barrels per day to reach 4.8 million barrels as an average production.

He added, "The information provided is not public, as Baghdad will ship 3.6 million barrels per day in the month of April using the maximum export capacity of pipelines, compared to the average exports during the month of March, which amounted to 3.4 million barrels per day." He explained that "Iraq believes that there are no restrictions on its oil shipments for the month of April, but it may face problems if the epidemic continues and if the customer tanks are full."

For its part, the Oil Ministry did not immediately respond to requests for comment on this information. The source pointed out that "the relative shares of Iraqi sales to Asia, Europe and the United States were not relatively affected by the spread of the Corona virus, and Asia remains the largest regional market for Iraq, while China is the largest buyer of Iraqi oil, as it imports between 800 thousand to 900 thousand barrels per day as Exports for the month of March showed." And that "some of the refineries in China began to increase production after life returned to normal slowly and slowly in some cities there." And if Iraq increases its oil production, it will join, according to analysts, to Saudi Arabia, Russia and other countries, in adding more oil to the market already flooded as a result of the price war between Riyadh and Moscow.

It is noteworthy that the Organization of Petroleum Exporting Countries "OPEC" failed earlier this month to persuade Russia to join the measures to reduce production, which led to the collapse of crude prices globally. The Minister of Oil, Thamer Al-Ghadban, affirmed today, Wednesday, that the production and export of ethnic oils to world markets continues smoothly. Al-Ghadban said, in a press statement, that "the extraction of crude from production fields in all regions of the country continues and has not stopped despite the outbreaks of Corona virus," stressing that "the production operations will not be affected by this," pointing to "the continuation of exports of Iraqi oils smoothly to the markets According to prevailing prices."

[MyLadiesDaddy]

On 3/30/2020 at 2:36 PM, DinarThug said:

Strategic expert: the net Iraqi oil price reaches 10 dollars ... meaning the state bankruptcy

Think about it people, their entire economic system is based on Dinar around 1180 to one. 

An RV/RI and Iraq will instantly become a world supper power. Which is why Iran has been a major cog in this all along. 

 

 

21 hours ago, jmartin1145 said:

You would think that they would have figured out by now that we elected a different president here in the good ole USA. Obummer is gone.

These people haven't even figured out how to use toilet paper yet. Seriously which is why they don't eat with their left hand. 

[CSM (R) Thack]

16 minutes ago, ladyGrace'sDaddy said:

These people haven't even figured out how to use toilet paper yet. Seriously which is why they don't eat with their left hand. 

Roger...That’s a true statement!! 👍🇺🇸

[horsesoldier]

Year 17 of the same verbal diarrhea begun in 2005  

[horsesoldier]

30 minutes ago, ladyGrace'sDaddy said:

Think about it people, their entire economic system is based on Dinar around 1180 to one. 

An RV/RI and Iraq will instantly become a world supper power. Which is why Iran has been a major cog in this all along. 

 

 

These people haven't even figured out how to use toilet paper yet. Seriously which is why they don't eat with their left hand. 

 

Seriously, no kidding here-your right, we expected way too much. 

Edited April 1, 2020 by horsesoldier

[horsesoldier]

We handed Iraq off to criminals loyal to Iran; otherwise with all the help in the world ( literally ), 

In the proper hands Iraq by now would be on its way to becoming the powerhouse of the M.E.

.... and ALL OF US would be off making those plans a reality instead of “ hoping “ that some day these criminals cry uncle and have no choice but to RV/RI. 

 

Their unwillingness so far has shown their tenacious attitude to holding the Iranian course, despite the consequences.

[DinarThug]

6 hours ago, DinarThug said:

Iraq plans to increase its oil production in April despite the saturation of the market

 

 

 

01/4/2020 09:19:28

 

 

An informed source said that Iraq, which is the second largest oil producer in the "OPEC", plans to increase production in the month of April, in the oil markets already saturated by the significant decline in demand due to the outbreak of the Corona virus.

And the American "Bloomberg" website quoted the source, who asked not to be named, as saying in press statements yesterday, Tuesday, that although many countries have taken measures to combat the emerging Corona virus, in addition to the intense competition between Saudi Arabia and Russia, Iraq plans to increase production by about 200 Thousand barrels per day to reach 4.8 million barrels as an average production.

He added, "The information provided is not public, as Baghdad will ship 3.6 million barrels per day in the month of April using the maximum export capacity of pipelines, compared to the average exports during the month of March, which amounted to 3.4 million barrels per day." He explained that "Iraq believes that there are no restrictions on its oil shipments for the month of April, but it may face problems if the epidemic continues and if the customer tanks are full."

For its part, the Oil Ministry did not immediately respond to requests for comment on this information. The source pointed out that "the relative shares of Iraqi sales to Asia, Europe and the United States were not relatively affected by the spread of the Corona virus, and Asia remains the largest regional market for Iraq, while China is the largest buyer of Iraqi oil, as it imports between 800 thousand to 900 thousand barrels per day as Exports for the month of March showed." And that "some of the refineries in China began to increase production after life returned to normal slowly and slowly in some cities there." And if Iraq increases its oil production, it will join, according to analysts, to Saudi Arabia, Russia and other countries, in adding more oil to the market already flooded as a result of the price war between Riyadh and Moscow.

It is noteworthy that the Organization of Petroleum Exporting Countries "OPEC" failed earlier this month to persuade Russia to join the measures to reduce production, which led to the collapse of crude prices globally. The Minister of Oil, Thamer Al-Ghadban, affirmed today, Wednesday, that the production and export of ethnic oils to world markets continues smoothly. Al-Ghadban said, in a press statement, that "the extraction of crude from production fields in all regions of the country continues and has not stopped despite the outbreaks of Corona virus," stressing that "the production operations will not be affected by this," pointing to "the continuation of exports of Iraqi oils smoothly to the markets According to prevailing prices."

 

LINK

Iraq’s oil revenue fell in March to its lowest level in years

 

 

 

01/4/2020 15:54:47

 

 

Crude oil revenues for Iraq tumbled during the month of March due to the significant drop in global market prices.

A spokesman for the Oil Ministry, Assem Jihad, said that "the revenues of the month of March reached more than two billion and 988 million dollars."

It is reported that the Ministry of Oil announced revenue for the month of February, as it exceeded five billion and 52 million and {528} thousand dollars, knowing that the quantities and financial revenues for the month of February are calculated on the basis of 29 days unlike other months and this decrease in Iraqi oil imports is the lowest in years what will constitute A new burden on the countries that depend on it by 90% ..

[horsesoldier]

No crisis here .... they ain’t worried— yeah right😝

[Pitcher]

The SA/Russia Oil war is doing exactly what they wanted it to do.  It has killed the Permian Basin Independents. SA better cool it though.  That oil is still in the ground and the stronger companies will survive.  The demand is the main reason for the decrease in price.  Watch oil go back up as soon as the CV is under control.  CVX is my possible play.  

 

Oil is going to be a dying commodity in the coming years.  As more and more people drive EV autos, factories move to solar and Electic Powerstations move to natural gas SA will have to diversify its economy away from oil.  I will be more than happy to tell those ME oil shiekdoms to go pound sand. Alternative and Renewable Energy is the future.  

[Pitcher]

https://oilprice.com/Energy/Energy-General/The-US-Is-About-To-Lose-Its-Place-As-The-Worlds-Largest-Oil-Producer.html
 

The U.S. Is About To Lose Its Place As The World’s Largest Oil Producer

By Irina Slav - Mar 31, 2020, 3:00 PM CDT

The United States may lose its top spot among oil producers globally this year, according to economists.With oil prices continuing their slide and Saudi Arabia reiterating its plans to flood the market with oil, U.S. producers are idling rigs and cutting spending plans.

Production has only one way to go: down. 

"I think it's almost a guarantee that this year it will certainly lose that position," Emirates NBD commodity analyst Edward Bell told CNBC, referring to the United States. "And it might happen probably a lot faster than we anticipate."

IHS Markit's Daniel Yergin also expects that U.S. oil production to swing from growth to decline this year on the significant slump in oil demand caused mostly by the coronavirus outbreak that has so far infected more than 700,000 people globally.

"We see in this coming month of April what could be a 20 million barrel a day decline in oil demand. It's unprecedented," Yergin told CNBC. "That's six times larger than the biggest downturn during the financial crisis period."

Related: Could Oil Really Fall To $0?

Earlier this month, Vitol's chief executive Russell Hardy told Bloomberg that he expected the outbreak to pressure demand by between 15 and 20 million barrels daily at its height. This demand loss is about one-fifth of the oil the world consumed before the crisis hit. West Texas Intermediate is trading at around $20 a barrel, down from over $50 a barrel earlier this year. In many parts of the U.S., oil wells are increasingly becoming uneconomical. In fact, many regional oil grades are already trading at below $20 a barrel or even below $10. This means well shut-ins may be the next step after idling rigs and cutting spending plans.

Some 44 drilling rigs were idled last week, according to Baker Hughes' weekly update. On an annual basis, last week's rig count was 278 rigs lower than the count last year - the largest weekly rig count drop since early 2016.

Meanwhile, everyone from the small shale independents to the heavyweights are revising their spending plans for the year. Some are even asking oilfield service providers for hefty discounts in a repeat of the 2014-2016 crisis when the situation was better than today's because back then, demand was its usual growing self. 

Now it has been crippled by the pandemic, and it's about to get worse.

Related: Standard Chartered Sees Record Oil Demand Loss This Year

In the past few days, there have been reports that storage space is filling up - not just in the U.S., but globally. Yet the problem is more acute in the United States because of the higher production costs compared with, say, Saudi Arabia. Earlier this week, a Texas Railroad Commissioner even said pipeline operators in the oil state had asked some producers to stop pumping oil because available storage space was growing scarce.

Meanwhile, Saudi Arabia has just announced that it plans to export 10.6 million bpd next month. This is up from about 7 million bpd this month, so it is quite a substantial increase. Besides that, the Kingdom plans to boost production to over 13 million bpd. Some expect it to overtake the U.S. as the world's largest producer of the commodity in a couple of years. Does it matter?

It seems that some industry observers and government officials in the U.S. insist on the top spot for its own sake. However, nobody is giving badges for how much oil a country can produce. While size may translate to energy security, the U.S. is still a large importer of crude oil - even if it last year became a net exporter of oil and refined products.

Maybe the time has come to ask whether it is that important to be number one for the sake of being number one, or whether it might be wiser to become more resilient to market shocks even at the expense of losing the top spot. A country doesn't need to be the largest oil producer to be able to swing markets. It only needs to be a large enough producer.

[Pitcher]

Who Is Really Responsible For The Oil Price War

 

At the end of March, Urals spot prices in northwestern Europe fell below $15 per barrel, a huge drop from the end of February when Urals spot prices had exceeded $50. Many observers attributed such a strong price collapse to the breakdown of the OPEC+ deal, and they blamed Russia for the suspension of the agreement. The breakdown of the agreement, however, was inevitable from the moment the OPEC+ deal was first signed in 2016.

Russia agreed to cooperate with a very weak OPEC in order to salvage the balance of the market as well as to better its own economic status by raising revenues and achieving price stability for all members of the deal. In the end, Russia accomplished these goals. A decrease in production led to an increase in oil prices. From 2016 to 2018, the average annual price of a barrel of Brent rose from $44.1 to $71.1, according to the World Bank, and the Russian budget deficit (3.7 percent Of GDP in 2016, according to IHS) was replaced by a surplus (2.8 percent of GDP in 2018).

But history has taught us that the breakdown of a cartel is never pretty. As well as affecting consumers, cartels normally harm their members and leaders, hence why almost all governments worldwide forbid cartels by law. Yet this is precisely why the collapse of the OPEC+ deal was inevitable.

The Deal-Ending Process

The fact that the breakdown of OPEC+ was inevitable does not explain why the March talks on the extension of the OPEC+ deal ended in failure. Regarding what happened on the ground, one can assume that Saudi Arabia had prepared a plan A and a contingency plan before entering the talks. Plan A was to surprise Russia in Vienna by pressing for a 1.5 bpd cut, including an unplanned prolongment of the deal until end of 2020. The contingency if that didn’t work was to pump as much oil as possible. Related: Oil Hits $20 For The First Time In 18 Years

Understanding that Russia was neither technically nor contractually able to match the ‘surprise cut’, Saudi Arabia went ahead with its contingency plan and presented Russia as the antagonist in what is today referred to as a “price war”. However, Russia had no intention nor any desire to disrupt any supplies or vital revenues, especially during the harsh and unpredictable times of the COVID-19 pandemic. Therefore, in my view, stating that Russia is responsible for this crude dumping process is misleading and not at all logical.

 

A Price War versus the Dumping Strategy

Today, everybody seems to consider the current situation to be a price war. Well, I don’t see it that way at all. I see it as a price shock and a dumping strategy by only one participant: Saudi Arabia. Saudi Arabia chose to play hardball and present Russia with an ultimatum just as the COVID-19 pandemic was majorly disrupting the global economy. The impact of this action on the other OPEC members will be horrific and even fatal for some. We know very well how European consumers and end-users react to “dumpers”. No long-term contracts will be signed, and usually dumpers are set on a “blacklist”. Sooner or later, this is exactly what will happen.

Consequences for Russia

A drastic drop in oil prices will become a “stress test” for the Russian budget, which will have to adapt via its many monetary alternatives. However, Russia is much less dependent on oil than many observers think. For example, extraction accounts for 43 percent of the Russian industrial structure, a bit less than manufacturing (47 percent, as per Rosstat data). At the same time, revenues from oil exports contribute to 21 percent of Russia’s GDP, according to the estimates from CREON Energy, while in Norway this figure is 32 percent. Moreover, in terms of oil production per capita, Russia is far behind Norway (4,128 VS 18,002 liters per year, according to CIA), Saudi Arabia (18,502 liters per year) and Kuwait (35,536 liters per year). Therefore, the consequences of oil price collapse will be no more dramatic for Russia than it will be for other major oil-producing countries.

Consequences for the US Shale Industry 

The free fall of oil prices is now affecting the vulnerable U.S. shale industry. In the last four years, shale has come under the control of the financial sector, which heavily invested in companies without any sustainable competitive advantage in the global oil market. For example, they invested in companies producing “light” grades of oil that are not required in the US local market nor are they required for exports as massive volumes of these grades are available on the market already. Several OPEC and non-OPEC countries produce these grades and are highly reliant on them.

 

 

Therefore, most of the “new” oil-producing companies in the US are highly over-valued, while proving low covering assets. The claim of US “energy independence” appears to have pushed authorities, Wall Street investors, banks and funds into chasing uneconomical investments. They then demand additional investments and further expansion, which in turn required even more capital to cover the deep ongoing losses. These companies sold billions of dollars in notes, bonds, and shares in order to fund semi-viable or even questionable acquisitions and, naturally, the value of those bonds have crashed instantly due to their real “balance sheets”. These papers turned into “junk”. Related: An Oilman’s Plea To President Trump

This picture was more than clear for policymakers around the globe and it is now time for the US to clarify this rapidly growing “cash-burning” phenomenon and to ask the question – Was this the correct way to conduct business? More than 6000 local drillers, for what? Maybe, we could consider a new rational approach or a logical consolidation eyeing the real national interest in oil?

Consequences for Environment

Finally, COVID-19 will bring awareness to the environmental issues within the industry. I’m confident that the green approach will be stronger than ever on the other side of this crash. Investors will understand that all green energies, such as wind, solar and hydrogen are much safer and much more sustainable to invest in. All gambling, non-viable, unsafe investments in hydrocarbons will simply disappear forever. It is true but sad that the COVID-19 symptoms, syndromes, signs and its outcomes for mankind are very similar to the occurrences that are taking place in the world economy. The virus fatally harms branches that are old and chronically sick, leaving the young and healthy ones to live long and prosper.

Unfortunately, there is always collateral damage, but it will certainly not be the vision of a “green economy”. The remaining post-COVID-19 oil operating countries will definitely continue to actively fund this new green era. But this can only happen under one condition: no more oil nations dumping crude onto markets.

Ironically, as I am finalizing this article, a plane with medical equipment is on its way from Russia to the United States, and the OPEC+ output cut deal is officially coming to an end today on April 1st.

 

https://oilprice.com/Energy/Energy-General/Who-Is-Really-Responsible-For-The-Oil-Price-War.html

 

 

[Pitcher]

https://oilprice.com/Energy/Energy-General/Unprecedented-Demand-Destruction-Marks-The-Return-Of-The-Super-Contango.html
 

Unprecedented Demand Destruction Marks The Return Of The Super Contango

By Tsvetana Paraskova - Apr 01, 2020, 6:00 PM CDT

These days, every corner of the oil market is “unprecedented”—from the demand destruction to the supply surge and the resulting glut. The oil futures curve is no exception and is also in a state never seen before.  This is the super contango, the market situation in which front-month prices are much lower than prices in future months, pointing to a crude oil oversupply and making storing oil for future sales profitable.  

The last time a super contango appeared on the market was during the previous glut of 2015. During the peak of the 2008-2009 financial crisis, the super contango hit a record—the discount at which front-month futures traded compared to longer-dated futures was at its highest ever.

The double supply-demand shock of the past month threw the oil futures market into another super contango. And this super contango is already beating previous records.

The super contango is representative of the state of the oil market right now: the growing glut with shrinking storage capacity as oil demand craters, OPEC’s leader and the world’s top exporter, Saudi Arabia, intent on further cratering the market with a supply surge beginning this month. Storage costs are surging, and so are costs for chartering tankers to store oil at sea for future sales when traders expect demand to recover from the pandemic-hit plunge.

The market structure flipped into contango in early February, when the Chinese oil demand slump in the coronavirus outbreak led to lower estimates for oil consumption. A month and a half later, oil consumption is set to plunge by 20 million bpd, or 20 percent, this month. Add to this the Saudi supply surge, and here we have what analysts expect to be the largest glut the oil market has ever seen.

Earlier this week, the oversupply and fast-filling storage capacity sent the discount of the May futures of Brent to the November futures contract to the widest contango spread ever—$13.95 a barrel, higher than even the super contango at the peak of the 2008-2009 financial crisis.  

With the rollover of the front-month futures contract in April, the June Brent futures traded early on Wednesday at a discount of $10.30 a barrel to the November futures, while the June 2020 futures spread to the June 2021 futures was $13.59.

One of the hottest ‘commodities’ in the market right now is storage—be it onshore or offshore—as commodity traders and oil majors are increasingly looking to profit from the super contango in several months’ time.  

Apart from the traders who manage to secure storage for stashing crude for sale in a few months, the other big winners of the super contango market structure are set to be tanker owners and operators, as rates for chartering tankers for storage are soaring.

Related: Russia’s Plan To Bankrupt U.S. Shale Could Send Oil To $60

Over the next few months, the tanker companies will be the biggest winners from the double market shock as traders rush to secure what’s left of available crude carriers for storage in the super contango structure.

The inventory buildup around the world will be so high that it will force up to 10 million bpd of global oil production to be “cut or shut-in from April to June 2020 as oil storage fills up and output from financially strapped companies begins to fall,” IHS Markit said on Tuesday.

“Under current conditions second-quarter global demand for oil is expected to be 16.4 million barrels per day less than a year ago. That is more than six times the record drop experienced during first quarter 2009 during the Great Recession. In April the drop will be even bigger,” said Aaron Brady, vice president, IHS Markit.   

“A combination of rapidly increasing crude supply and a buoyant market for crude storage is underpinning a very robust tanker freight market and strong cash generation presently,” tanker operator Euronav said in the outlook in its 2019 results release. However, it warned this would be a temporary event.

“The second quarter of 2020 now looks like it will be one of the greatest quarters in history for large crude carriers, and while there will be a hangover at some point, this party is totally worth it,” Eirik Haavaldsen, head of research at Pareto Securities, told Financial Times this week.

After the crude tanker operators, the next in line to profit from the super contango are the traders who will have stored oil to sell at higher prices several months or a year from now.  

[Pitcher]

Oil PriOil Prices Hit 20-Year Lows, But These Supermajors Are Hanging On Tight

 

Oil punters have been watching unfolding developments in the energy space with bated breath after Saudi Arabia made good on its promise to ramp up production to 12 million bpd, and Russia indicated plans to refrain from further production hikes saying such a move is unprofitable. The declarations have come hot on the heels of a flurry of U.S.-driven diplomacy, with Trump talking to both Saudi and Russian leaders, though the former OPEC+ allies have no interest in speaking to each other, as per the Kremlin.

Any agreements to cut supply by either party at this juncture are, however, likely to be a case of too little too late, with trading house Vitol projecting global demand to fall by as many as 30 million bpd in April amid a crippling global pandemic.

Not surprisingly, Trump has tried to paint the desperate situation in a more positive light:

"People are going to be paying 99 cents for a gallon of gasoline," he has said. "It's incredible in a lot of ways. It's going to help the airlines."

Energy companies might not share his enthusiasm, though.

A prolonged oil price war could threaten the survival of hundreds of U.S. shale companies, with as many as 50% likely to face bankruptcy sooner rather than later. 

With oil appearing to be holding steady just above $20 a barrel, Mark Newton of Newton Advisors has told CNBC's Trading Nation that he believes that the low isn't in yet for crude.

Lowest Costs

Lowest cost producers are better placed than most to weather the carnage.

Although U.S. shale companies have been able to cut their average production costs by nearly half to around $43.83 per barrel compared to $82.75 per barrel in 2012, only 16 U.S. shale companies can make money at oil prices below $35 per barrel as per Rystad Energy via Reuters.

 

Related: $1 Oil: Saudi Arabia's Attempt To Crush U.S. ShaleThe big-daddy of the space, Exxon Mobil Corp. (NYSE: XOM), boasts a break-even point of $26.90 per barrel at its New Mexico oilfields, representing about a quarter of its Permian output. Although the company is yet to make any production cuts, it has closed a crude distillation unit at its 502.5K bbl/day Baton Rouge refinery in Louisiana, citing low demand.

Exxon's current dividend yield of 8.96% ranks as the 5th highest among integrated oil and gas companies. The company's debt-to-equity ratio of 0.25 is considerably lower than the industry median of 0.47 though its fwd price-to-cash flow ratio of 7.37 highlights its rather weak cash flow compared with the sector median of 2.25. Exxon has long been considered the gold standard in the oil-and-gas credit ratings. But that changed (slightly) in November after S&P Global lowered the company's rating to A.A. from AA+ on cash flow concerns.

Exxon appears to be confident of its position, with Pioneer Natural Resource CEO Scott Sheffield recently accusing it of blocking help from the American government for the U.S. shale industry in a bid to kill smaller shale companies.

Chevron Corp. (NYSE: CVX) recently announced a 20% cut in its FY 2020 guidance for organic capital and exploratory spending of $20B to $16B as well as suspension of its $4B stock buyback program, in a strong response to the oil price crash. 

Chevron will end the first quarter, having spent just $1.75B of the $5B earmarked for buybacks in the current financial year with no plans for further repurchases. Meanwhile, much of the CAPEX cuts will come in the Permian Basin--a key engine of Chevron's production growth. 

Chevron expects to cut production in the basin by 20%, translating into 125,000 fewer barrels of oil equivalent per day--or 2.5% of the basin's total current production.

Chevron, however, has kept its dividend program intact with management reaffirming that it remains 'very secure, with CVX shares sporting a 7.17% dividend yield, the 7th highest in the integrated energy sector. 

The company's debt-to-equity ratio of 0.19 has come down considerably from a multi-year high of 0.32 in early 2017 while its fwd price-to-cash flow ratio of 7.91 is worse than the sector median of 2.25.

EOG Resources (NYSE: EOG) can make money at oil prices below $35 per barrel. 

Its debt-to-equity ratio has declined steadily from a multi-year high of 0.60 in 2016 to around 0.24 recently. EOG has maintained its A3 rating on Moody's despite recently cutting CAPEX by 31%.

 

 

Devon Energy Corp. (NYSE: DVN) is another sub-$35/barrel oil producer. The company has gone on a spending-cut rampage, lowering CAPEX twice in the space of a month by 45%. The company will slash spending by 29% in the current fiscal period and reduce drilling activity in a bid to preserve liquidity. Devon has a healthy 6.37% fwd dividend yield, while its debt-to-equity ratio of 0.74, though high, has been improving from 2.60 in 2016 while its and price-to-free cash flow ratio of 2.07 trumps the industry median of 2.25.

Related: What Happens If You Can’t Pay Your Electricity Bill?

The Riskier Picks

Occidental Petroleum Corp. (NYSE: OXY) boasts operating costs below $30 per barrel; however, its debt position has deteriorated considerably, with the debt-to-equity metric jumping from 0.50 in mid-2019 to 1.12 currently thanks mainly to its highly leveraged acquisition of Anadarko in August that left it with a $40-billion debt load.

Denver-based shale producer SM Energy Co (NYSE: SM) has hedged 80% of this year's oil production, which guarantees it oil prices of about $55 to $58 per barrel, meaning it might not be under tremendous pressure to cut production or lower spending quickly. However, the company's high leverage (debt-to-equity ratio of 0.99) and weak liquidity leave it vulnerable to a selloff.

Fat Dividends

For investors hunting for something different other than traditional oil and gas stocks, EQM Midstream Partners (NYSE: EQM), an MLP, or Master Limited Partnership, of Equitrans Midstream Corp., is an interesting proposition. With a 39.3% dividend yield, EQM easily trounces the sector median yield of 10.5%. 

Another significant advantage: being an MLP, EQM combines the liquidity of publicly traded companies and the tax benefits of private partnerships because profits are taxed only when investors receive distributions.

Further, MLPs pass on the majority of their earnings to unitholders thanks to their unique hybrid legal structure (they have no employees with general partners providing all necessary operational services) and also transfer deductions such as depreciation and depletion, which lower your cost-basis and your taxable income as well. Their fat distributions can offer a measure of downside protection in choppy energy markets.

 

https://oilprice.com/Energy/Energy-General/Oil-Prices-Hit-20-Year-Lows-But-These-Supermajors-Are-Hanging-On-Tight.html

[DinarThug]

The coming disaster in bankruptcy of Iraq

Last updated: April 1, 2020 - 11:52 am

Written by: Jumah Abdullah 

It guaranteed the collapse and deterioration of oil prices in global markets, with the worsening of the Corona virus crisis, and the spread of infection very seriously. Within this terrifying climate that surrounds the world. The price of a barrel of oil reached less than $ 20. 

This constitutes a setback and a suffocating crisis for the oil-producing countries, and in Iraq it will have devastating and deadly effects, under a powerless, paralyzed and rotten government, by the militias affiliated with the Iranian loyalty. Who put Iraq in the pocket of Iran.

They depleted the Iraqi financial treasury to pour into the Iranian arteries, and give it the elixir of life and permanence, in the face of the deadly storms that Iran faces, as it heals bankruptcy and the collapse of the system. The influx of billions of dollars comes to stop the deterioration and bankruptcy of the Khamenei regime. At the expense of disrupting the Iraqi machine and making it dependent on Iran, and making Iraq a local market to Iran that exports its goods, and even weak, consumed and tired electrical energy, Iraq buys them in billions of dollars annually. In recruiting Iraq financial energies to serve Iran. 

 

Even the money obtained from the border outlets and ports, Iran obtains it with the lion's share of the money. And deprives Iraq of it and who, thus, made the Iraqi state a thousand punished, paralyzed and idle in providing all basic services to the citizen, including medical and health services in their miserable and scarce state.

The case of the tragic hospitals is deplorable. Because all the money that was allocated alongside the medical and health services was looted, stolen and vowed between corruption and corrupt, during the booming oil prices globally until the price of a barrel of oil reached 80 dollars, how should Iraq be when a barrel price is sold less than 20 dollars, and within this terrifying climate in the spread Corona Virus . 

The government and the Ministry of Health are totally unable to take action to combat the Corona virus and protect citizens from the risk of infection and death. The Minister of Health stated: He requested from the government and the Ministry of Finance a small amount of $ 156 million, to purchase the equipment needed to combat the Corona virus. But the government did not respond to a request, and it cannot provide it. Therefore, he made a humanitarian appeal to the financially empowered groups to seek financial assistance and assistance, before the Ministry of Health inflicted disability and failure to confront the dangers of the epidemic that is spreading alarmingly among the citizens. But he did not get from this humanitarian appeal and call, except for a very simple amount, while the governments of the world are pumping billions of dollars in the medical and health aspect in the face of the dangerous and deadly epidemic.

The situation in Iraq is heading for a serious deterioration, within the severe and serious crisis in the decline in oil prices. So that the monthly financial deficit for Iraq, as a result of this serious setback, becomes more than two billion dollars per month. And so that he can not walk only to pay the salaries of workers, employees and retirees, even if he cut salaries by half. 

As long as the Iranian ghoul is on the lookout for Iraq’s money even in its scarce state, because Iraqi money is the elixir of life to the Iranian regime. Without this lifeline, he will inevitably face bankruptcy. Therefore, militias affiliated with Iran are active in pumping money because its fate is linked to the fate of the Iranian regime. 

If we take into consideration that the International Monetary Fund refused to lend to Iraq a financial loan even on an unfair condition, under the pretext that Iraq was going to bankruptcy and could not pay the burdensome debt on it. This catastrophe that brought Iraq to it. From the rule of the religious and sectarian parties.

LINK

[DinarThug]

Central Bank: We will continue to auction the currency to support trade and import food

2020-04-01

 

 

 

Follow Iraq:

 

Today, Wednesday, the Central Bank of Iraq called private banks and exchange firms to take a responsible role in light of the current stage, indicating its continued monetary and financial policy.

A statement seen by Yassin Iraq said, "The efforts of the various institutions in our country to fight the Corona epidemic and get out peacefully from this crisis join together," calling on "banks, exchange companies and electronic payment companies to take their responsible role at this stage."

He added, "Although the curfew has affected the activities and actions of all official institutions, including the Central Bank of Iraq, we have taken the initiative to employ our cadres in order to sustain the payment of salaries and finance of food, agricultural, medical and all necessary materials," stressing that "there is no change in its policy in financing Trade and imports, which will resume after the ban is fully lifted.

With regard to the next stage, the statement stated that “the bank will begin to enhance bank balances abroad through the foreign currency sale window, according to a schedule of working days and according to the requirements of the situation, and that is to be reported first, for the purposes of financing the credits of importing foodstuffs, agricultural supplies, medical materials and goods necessary for the country and citizens.” .

link

[DinarThug]

The Iraqi dinar collapses against the dollar and urgent demands to rectify the matter .. What is the role of the Central Bank?

2020-04-01

 

 

Yassin Iraq: Baghdad

 

The popular and economic circles in Iraq panicked today, Wednesday, because of the record high dollar in front of the Iraqi dinar, as it reached in some areas to 126 thousand dinars against the 100 Iraqi dollars, while questions were raised about the role of the central bank in that.

And the local media reported, the high dollar exchange rate against the Iraqi dinar, while some regions recorded 126 thousand dinars in front of a class of 100 US dollars, after it was 123 thousand dinars, when the markets opened.

Media outlets reported that "the rise in the price of the dollar is due to the crisis in the spread of corona and the closure of the central bank."

Security and political expert Fadel Abu Ragheef wrote, in a tweet monitored by "Yassin Iraq" that "the Iraqi dinar" begins with the deterioration of the dollar's rise, "considering that" the security, social and living situation is linked to the economic situation, and the central bank must act immediately and urgently to pump more dollars to control the rise of the reprehensible dollar. "

He emphasized that "the poor are the first to be affected by the Iraqi dinar, the matter must be addressed immediately."

 

فاضل ابو رغيف@fadhil_abu_ragh

 

 

الدينار العراقي
يبدأ بالتدهور ازاء ارتفاع الدولار،الوضع الأمني والاجتماعي والمعيشي مرتبط بالوضع الاقتصادي،ويتعين على البنك المركزي وفورًا وباجراءٍ عاجلٍ لضخِ مزيدٍ من الدولار للسيطرة على ارتفاع الدولار المقيت،الفقير اول من سيتأثر بنزول الدينار العراقي،ينبغي معالجة الامر حالاً.

Fadel Abu Ragheef @ fadhil_abu_ragh The Iraqi dinar begins to deteriorate with the rise of the dollar, the security, social and living situation is linked to the economic situation, and the central bank must immediately and by urgent action to pump more dollars to control the rise of the dollar, the poor first to be affected by the decline of the Iraqi dinar, the matter should be addressed immediately .

6:17 AM - Apr 1, 2020

 

Sources emphasized that "the central bank was pumping large amounts of dollars daily, but it is not as usual and because of the Corona virus crisis it reduced pumping, as the government allowed banking shops to open for two days a week and only very specific times in some regions, which raised the exchange rate of the dollar."

 

Noor Nt@noor_nt

 

 

هاااااام

آرتفاع غير متوقع لسوق صرف الدولار "مقابل الدينار العراقي "حيث وصل سعر الصرف الـ "100$" لـ 126 آلف دينار عراقي ورجح رئيس سوق صرف الدولار سبب الآرتفاع لعدم وجود تداول للبورصة والدولار خلال الايام الماضية #وشحته وان البنك المركزي العراقي يضخ الدولار قليلاً ،

 

4:26 AM - Apr 1, 2020

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The "balance" must continue

For his part, the economic expert, Amer Al-Jawahery, revealed the reason for the high exchange rates of the dollar against the dinar, while stressing the need for the central bank to continue pumping more dollars to the market, and for fear of the weak incoming from the dollar to the bank due to the low oil prices.

Al-Jawahiri affirmed in an interview with “Yas Iraq” that the central bank should continue to pump the dollar to the market and maintain this balance. Difficult to the country, but there is stock and I am afraid of this step. ”

And Al-Jawahiri pointed out that "one of the reasons for the dollar's rise is the widespread fear in the country of the economic crisis, as well as the transfer of some of its money out of the country by the dollar."

link

[DinarThug]

Humiliating and auxiliary mechanisms for "Corona" in the "K-Card" outlets .. Will the "spoiled girl" of government banks be accused of "virus outbreaks"?

2020-04-01

 

 

Yassin Iraq: Baghdad

 

The government agencies or those associated with them almost never preach measures that are in line with the decisions of the Crisis Cell regarding avoiding exposing citizens to the risk of coronavirus outbreaks, until they breach them by accidental procedure without prior planning, while announcing that they will address the issue later, and even declaring that the situation will be corrected. .

Two days ago, the Rafidain Bank announced the launch of civil and military retired salaries for the month of April through electronic payment tools, directing retirees to go to receive their monthly salaries from wherever they are.

 

Faysal.9090@Faysal_Alani

 

 

استلام الرواتب في العراق العظيم حتى التكنولوجيا نصر على استخدامها بطريقة غبية

شركة كي كارد ومصرف الرافدين والرشيد صارلهم بحدود ال١٠سنوات ولحد اللن ماعرفو ينصبون اجهزةATMحالهم حال اي بقعة بهذا الكوكب
اذا استمرت الامور بهذا الشكل بدون اي حلول منطقية احنه ماخذين نفسنا للتهلكة

 

6

4:54 AM - Mar 31, 2020

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At a time when Key Card Company controls the highest percentage of tasks of distributing pensioners ’salaries and their financial benefits in exchange for distribution services without adopting governmental mechanisms directly linked to banks without the need for secondary companies that are considered an“ intermediary ”between the bank and the citizen, so I saw K-Card outlets for distributing salaries Intense crowds in humiliating ways as well as the risk associated with these clusters that help spread the Corona virus.

HND .@iq9_iq9h

 · Mar 31, 2020

 

Replying to @MUNQITHDAGHER @V_o0j

ليش ميحولوهم ع فيزا كارد ويوفرون بكل مكان ATM وينزللهم راتبهم ويستلموا من اي مكان يعبهم بلا شلعان الكلب ع ميتين الف وكلهم كبار بالعمر . لشوكت نبقى متاخرين ماعرف
HND. @ Iq9_iq9h · Mar 31, 2020 Reply to @MUNQITHDAGHER @ V_o0j why don't they convert them with Visa Card Shawkat we stay late I don't know

 

◥إلزبـ̨̥̬̩يدي◤@One123123One

 

تدرين شركة (كي كارد) تاخذ عمولة ع كل سحب (1,000)دينار
تخيلي عدد المتقاعدين بالعراق فد (5) مليون يعني كل شهر صافي اذا العدد صحيح 5,000,000 * 1,000 = 5مليار دينار
صافي الهم فتريدين يغيروها !!

You know that the company (Card) takes a commission for every withdrawal (1,000) imaginary dinars. The number of retirees in Iraq is fd (5) million, which means every month is net. If the number is correct 5,000,000 * 1,000 = 5 billion dinars, the net concern is that you want to change it !!

6:51 AM - Mar 31, 2020

 

 

The scenes of the accumulation of citizens and the elderly in front of the distribution outlets are not new, but the spread of the scenes at this time accompanying the warnings of the Crisis Cell and the Ministry of Health that strive to prevent all gatherings and the consent of citizens to disrupt their public lives due to the curfew, these scenes caused shock and anger of citizens as well as those interested in public affairs Where the absence of the mechanism to organize the distribution of salaries comes against all recommendations and concern for the safety of citizens.

 

 

Retired "fleeing with terror"!

 

Retired Hamid Jamil, 57, says he was "shocked when he saw the scenes of citizen accumulation at one of the K-Card salaries' distribution outlets," stressing that he "escaped with consternation at the gathering that warns of the danger of an outbreak of the Corona virus and had to postpone receiving his salary and delaying it for days better than being infected with Corona infection and transferring it to family members".

In addition to the previous questions and suspicions surrounding the key card company, the company today faces charges of not caring and ignoring the safety of citizens and public health, when it did not create a good mechanism that allows citizens to receive their salaries in a humiliating manner and does not pose a health risk for them and their families and society in general amid the challenge of the fierce spread of the Corona virus ”

The social media sites have produced angry expressions at these scenes, which warn of a lack of responsibility for the public health threat posed by the virus.

 

Mustafa Saadoon مايطلع من البيت  #StayHome@SaadoonMustafa

 

 

المتقاعدون في بغداد يستلمون رواتبهم. الصورة اليوم.

!!!!!!!!!!!!!!!!!!!!

Retirees in Baghdad receive their salaries. Photo today. !!!!!!!!!!!!!!!!!!!!

 

6:23 AM - Mar 31, 2020

 

 

 

KCard throws the ball into Al-Rafidian Stadium

 

The "Iraq Iraq" platform faced the "Key Card" company with the accusations it faces by not caring about public health by encouraging gatherings in a way that lacks regulatory mechanisms, but the company threw the ball in the Rafidain Bank stadium.

"The company is to provide banking services and it is not authorized to authorize and the matter belongs to the Rafidain Bank," said Director of Relations at KCard, Ahmed Ali, stressing that "the distribution outlets are also affiliated with the Rafidain Bank and fall under its regulatory responsibility." .

Hazem stressed that "a committee linked to the crisis cell has been formed by the Rafidain Bank, and the issue of groupings and mechanisms to pay salaries will be addressed."

And Hazem said that "the relevant authorities in the Rafidain Bank will be contacted on the" Yassin Iraq "platform to inform them about the mechanisms that will be taken."

While the Rafidain Bank Committee is studying the establishment of specific mechanisms to address the issue of overcrowding at distribution outlets, the virus may find it stable among retirees, amidst the two-day rallying scenes.

link

[DinarThug]

LINK

UK Ambassador addresses IBBC Members via Videoconference

 

 

1st March, 2020

Ambassador Stephen Hickey addresses IBBC members via videoconference

Over 50 Iraq Britain Business Council (IBBC) members yesterday participated in a video conference call with Ambassador Stephen Hickey, from his office in the UK Baghdad Embassy.

The Ambassador updated members on the current situation in Iraq, covering four key areas of interest: COVID 19 response and challenges, The Political landscape and implications for Government , the Economy and impact of oil prices, and Security and how this is impacting on coalition activity in the region.

The Ambassador took questions from a number of members concerned about decision making within Government at this time of uncertainty, the role and support of UKEF regarding on going projects, the role of the dollar and local currencies, the likely nature of a new Government, and the general outlook for Iraq.

Feedback from the Conference suggests videoconferencing will become a regular feature of IBBC activity and reporting, due to the high volume of attendees, and IBBC expect to set up regular calls with Ministers, institutions and officials to engage with members directly and as a group.