Iraq Demands 6 million Barrels A Day From OPEC Or Iraq Walks.

[Luigi1]

Here's an article of Dinarian interests...

Iraq Demands 6 million Barrels A Day From OPEC Or Iraq Walks.

Treat as a rumor.  Not verified.  Your opine.

 

 

 

Reset Intelligence: 6 Million Barrels A Day.

ARTICLE:  Iraq walked into OPEC's capacity audit this week & filed a formal demand: A production baseline of 6 million barrels per day.

 

And 66 years to the week after 5 oil states founded OPEC in Baghdad, the host just asked the cartel it created to move aside.

 

The Demand At The Cartel:

The number is on the wire services. Iraq wants its OPEC+ baseline set at 6 million barrels per day, a third above its current quota of about 4.4 million & nearly double what it pumped last month. 

 

Attached to the request: a reconstruction bill Baghdad puts at $400 billion.  The capacity review wraps this month & the ministers ratify new quotas in November.  Iraq hinted in June that it could leave the cartel if the answer disappoints & everyone at that table remembers what the last unanswered quota grievance produced: the Emirates walked out on May 1.

 

The Oil Law Actually Moved - But Not The Way The Rooms Say:

The Dinar community spent yesterday declaring the oil & gas law passed.  It has not passed.  What actually happened is still significant: Iraq's ruling coalition reviewed an updated draft & finalized consensus terms before sending it to Parliament, with a senior Kurdish delegation in Baghdad the same week.  After 19 years & 4 dead drafts, the blocs have agreed to finally put the argument in front of the chamber.  Nothing has been submitted yet & no reading is scheduled.  The filing is the  news.  Passage is not.

 

The Week In One Block:

-2027 budget - the draft reaches the Council of Ministers September 15, Iraq's first complete fiscal plan since 2023.

-Cabinet - candidate files for the 9 empty seats due Saturday, parliament vote expected next week.

-Gold - Iraq added another tonne, reserve now 175.6 tonnes, about a quarter of everything it holds.

-The water - 8 Iranian tankers destroyed in a week, 18 of 20 missiles intercepted over Jordan, Brent settling above $100.

-Washington - Trump says the war ends immediately after the election; Treasury's opening upsized buyback ran at $6 billion

 A country that had its price handed to it in 1960 just walked back into the same city & named its own scale.  The paper that   records what that scale is worth arrives September 15.

-That Is The Short Version - The public record anyone can find.  What it means for the Dinar, how the quota demand connects   to the Budget that has to price the currency & why the oil law is moving now after 19 years of refusal - that connection work is   what the full daily briefing does, every day.

 

[Luigi1]

Luigi's two cents worth...

Iraq is demanding special concessions from OPEC+.

Iraq wants to pump 6 million barrels of oil a day.

That's nearly 30% above it's current set OPEC quotas.

OPEC should grant Iraq it's special waivers.

Iraq has the most to lose during the US-Israel-Iran war.

No other nation in the region suffered economically, as much as Iraq did.

If OPEC does not ablige, then Iraq should walk away.

Iraq must look out for it's best interests, OPEC is not.

Competion is high amoung oil producing nations.

Oil prices are near $100 a barrel right now. 

The oil market is volitile & prices won't remain there very long.

Iraq must strike while the iron is still hot.   IMHO.

[Luigi1]

Here's another article related to the above...at the breaking point...

 

 

 

Oil Breaks $100: Energy Shock Pushes Inflation, Bond Yields & Global Finance Toward A New Pressure Point.

ARTICLE:  Renewed UD-Iran attacks on shipping have pushed Brent crude above $100 a barrel while rising bond yields add another layer of pressure to an already strained global financial system.

 

OVERVIEW:

Oil has moved back above the psychologically important $100-per-barrel level, as renewed military attacks involving the US-Iran threaten to further disrupt energy supplies moving through the Middle East. Brent crude remained above $100 on Thursday after reaching levels not seen since July.  The renewed energy shock is arriving at a particularly sensitive time for global financial markets.  Higher oil prices can feed into transportation, manufacturing, food & consumer prices, potentially creating another wave of inflationary pressure just as central banks are trying to determine their next moves on interest rates.  At the same time, global bond yields have moved higher.  The US 10-year Treasury yield has reached its highest level since 2023, while the Treasury's effort to support longer-term bonds through a $6 billion buyback has failed to fully reassure investors.  The result is a developing chain reaction: geopolitical conflict is affecting energy markets, energy prices are affecting inflation expectations, inflation is affecting interest rates & interest rates are affecting government debt &  currencies.  For the Global Reset discussion, this is important because the financial-system change does not occur in isolation.  Pressure can build across several pillars of the global economy at the same time.

 

KEY DEVELOPMENTS:

1. Oil Moves Back Above $100.

Brent crude has remained above $100 a barrel after renewed attacks on shipping connected to the US-Iran conflict.  The Strait of Hormuz remains a major concern because it historically carried roughly one-fifth of global oil & gas supplies.  Continued disruption could keep a significant amount of energy supply off normal routes.  Higher crude prices raise costs throughout the global economy.  Transportation & fuel expenses can increase.  Energy-intensive industries face higher operating costs.  Consumers can feel the impact through gasoline, diesel & other products.  The longer the disruption, the greater the possibility that a temporary energy shock becomes a broader inflation problem.

2. Inflation Pressure Returns to the Financial Markets.

The latest oil surge comes just as investors are watching US inflation data closely.

Higher energy prices can make it more difficult for inflation to move sustainably toward central banks' targets.  That creates a difficult policy environment because central banks may have less room to reduce interest rates if energy costs begin pushing inflation higher again.  Reuters reports that markets are closely watching US producer-price & inflation index readings for clues about the Federal Reserve's next interest-rate decision.

The issue is not simply the price of oil today.  It is whether higher energy costs become embedded throughout the economy.

3. Treasury Yields Add a Second Layer of Pressure.

The oil shock is occurring alongside rising government bond yields.  The US 10-year Treasury yield has moved to its highest level since 2023, while longer-term Treasury yields have also risen. The Treasury recently increased its planned long-term bond buyback to $6 billion, but investors remained unconvinced that the program was large enough to materially change the broader supply-&-demand picture in the roughly $32 trillion Treasury market.  Higher yields matter because they increase borrowing costs throughout the economy.  They also increase the cost of financing government debt as existing securities mature & must be refinanced.  This creates a difficult combination: Higher oil → higher inflation pressure → higher interest-rate expectations → higher bond yields → greater debt-service pressure.

4. Currencies Are Responding to a Changing Interest-Rate Environment.

 Currency markets are also being affected by the combination of oil prices, inflation expectations & changing interest-rate expectations.  The Dollar has received only limited support from the latest turmoil, while other major currencies are responding to their own economic & monetary conditions.  China's Yuan has remained relatively strong, while markets are watching the European Central Bank, Federal Reserve & Bank of Japan for indications of their next policy moves.  This demonstrates why energy prices can become a  currency issue.  Countries that depend heavily on imported energy can face worsening trade balances when oil prices rise.  Energy exporters, meanwhile, can receive increased revenues from higher commodity prices.  The end result can be a redistribution of financial pressure across nations & currencies.

5. The Bigger Issue Is the Interaction Between Energy, Debt & Money.

The most important development may not be any single price or yield.  It is the interaction between multiple pressures at the same time.  The world is dealing with geopolitical instability, disrupted energy flows, persistent government borrowing, elevated bond yields and uncertainty over the future path of inflation.  These pressures can force governments, central banks & financial institutions to reconsider how capital moves through the int'l system.  That does not mean a Global Reset is automatically triggered by today's oil price.  It means the existing system is being tested by conditions that can accelerate financial restructuring & encourage nations to seek greater resilience in energy, trade, payments & currencies.

 

WHY IT MATTERS:

Oil is more than a commodity.  It is an input into transportation, manufacturing, agriculture & virtually every major economy.  When energy prices rise sharply while government debt & bond yields are already under pressure, the financial consequences can spread well beyond the energy sector.  The bigger story is the convergence of energy risk, inflation risk & debt risk.  This is not merely an oil-price story — it is a pressure point in the evolving global financial order.

 

WHY IT MATTERS TO FOREIGN CURRENCY HOLDERS.

Many readers hold foreign currency with the hopes that it will increase in value when the Global Reset occurs.  Today's developments provide another reason to watch the underlying financial system rather than focus only on predictions about a specific currency.  Rising energy costs, changing interest rates, government debt pressures & evolving int'l trade relationships can all influence currency values.  However, today's oil surge does not guarantee a revaluation of any particular currency, nor does it establish a timetable for a Global Reset.  The more useful approach is to watch the underlying financial infrastructure & the measurable economic forces that could eventually influence how currencies are valued & used.  Hope is understandable. Evidence is essential.

 

IMPLICATIONS FOR THE GLOBAL RESET.

Pillar 1 — Debt & Monetary Stability.

Rising Treasury yields demonstrate the continuing challenge of financing large government debt loads while maintaining investor confidence.  If inflation remains elevated because of energy costs, central banks may face greater difficulty balancing price stability against economic growth & debt-service pressures.  That tension is one of the major structural issues to watch as the global financial system evolves.

Pillar 2 — Energy, Trade & Currency Restructuring.

The disruption of Middle Eastern energy flows demonstrates how dependent the global economy remains on stable int'l trade routes.  At the same time, countries have increasingly been looking for greater resilience through alternative suppliers, local-currency trade, new payment systems & diversified reserves.  The combination of energy security, payment modernization & currency diversification is therefore becoming increasingly important to the future architecture of global finance.

 

THE BOTTOM LINE.

The return of oil above $100 is significant because it arrives at the intersection of several major financial pressures.  Energy prices are rising. Inflation concerns are returning. Bond yields are climbing.  Government borrowing remains enormous.  And currencies are responding to a rapidly changing interest-rate environment.  None of this proves that a Global Reset is imminent.  But it does demonstrate why the global  financial system remains under pressure—& why developments in energy, debt, currencies & int'l payments deserve close attention. 

The next major financial shift may not come from a single market — it may emerge as energy costs ignite inflation, inflation pushes bond yields higher & rising debt pressures begin traveling through the currencies & financial systems of nations around the world.