Thread: Archive Latest News - Think Tank - 15/04/08 - 26/08/08

Demand for dollar up at daily auction

Demand for the dollar was up in the Iraqi Central Bank's auction on Monday, registering at $74.155 million compared to $55.190 million on Sunady.

"The demand hit $7.165 million in cash and $66.990 million in money transfers outside the country, all covered by the bank at an exchange rate of 1,199 Iraqi dinars per dollar, unchanged for the third session running,” according to the central bank's daily bulletin which was received by Aswat al-Iraq- Voices of Iraq- (VOI).

The 14 banks that participated in the auction offered to sell $2.500 million, which the bank bought all at an exchange rate of 1,197 dinars per dollar.

The Iraqi Central Bank runs a daily auction from Sunday to Thursday.

Aswat Aliraq

Iraq to partake in Arab-Chinese Forum in Bahrain

Iraq will participate with a high-ranking ministerial delegation in the third round of the Arab-Chinese Forum, scheduled to be held in Bahrain from May 20-22, the director of the economic relations department in the League of Arab States said on Monday.

"Foreign Minister Hoshyar Zibari or a delegate minister will hopefully participate in the meetings that will also be attended by the secretary general of the Arab League, Amr Moussa, and the Chinese foreign minister, Yang Jiechi, as well as representatives from all over the Arab world…," Thamir Mahmoud al-Aani told Aswat al-Iraq - Voices of Iraq - (VOI).

The meetings will discuss regional and international issues of common concern to the Arab and Chinese sides, al-Aani explained.

Since its establishment, the forum has been holding meetings every two years. The first round of meetings was held in 2004 and the second in 2006.

It is worth mentioning that Arab markets, including Iraqi markets, are larges consumers of Chinese products, particularly electrical appliances and household items.

Aswat Aliraq

UN Not Supposed to Seek Alternative to Article 140, Communist Leader Says

The Patriotic Union of Kurdistan (PUK) and Kurdistan Communist Party vowed to further strengthen relations in all aspects as the political bureaus of both parties held a meeting today in Sulaimani.

“Kurdistan Communist Party is one of key political parties in Kurdistan. It has, therefore, its share in KRG cabinet,” the spokesman of PUK political bureau, Mala Bakhtiyar, told the reporters after the meeting.

Calling on better activating the Council of Kurdistan Region Political Parties, the Leader of Kurdistan Communist Party, Kamal Shakir, said his party has often given constructive criticisms to the government.

Both sides expressed their concerns over the Turkish and Iranian bombings against Kurdistan region, considering them as the violation of Iraq’s sovereignty.

“UN only facilitate implementing article 140, whereas there is a misunderstanding that UN seeks an alternative solution to address the issue, Kamal Shakir said in response to a question regarding the latest development to article 140.

Speaking about the expected President Talabani’s visit to United States, Mala Bakhtiyar said his visit will be unofficial.

PUKmedia :: English - UN Not Supposed to Seek Alternative to Article 140, Communist Leader Says

OPEC signals reluctance to lift oil output

Crude oil rose Monday to a record close on skepticism that Saudi Arabia's decision to increase output by 300,000 barrels a day will be sufficient to reduce prices.

Saudi Arabia will increase production by about 3.3 percent to 9.45 million barrels a day in June, Oil Minister Ali al-Naimi said in Riyadh on May 16. The gain won't subdue prices because they have been driven higher by the weak U.S. dollar and not supply, OPEC President Chakib Khelil said Monday.

"OPEC seems pretty happy with production where it is," said Tom Bentz, a broker at BNP Paribas in New York. "The Saudi announcement of a 300,000 barrel-a-day production gain is not enough to send prices lower, it's not a huge amount."

Crude oil for June delivery rose 76 cents, or 0.6 percent, to $127.05 a barrel on the New York Mercantile Exchange, a record settlement price. The contract climbed to $127.82 on May 16, the highest intraday price since trading began in 1983. Prices are 96 percent higher than a year ago.

Khelil said OPEC would not meet before its next scheduled gathering in September and that this meeting was unlikely to result in an output increase.

"All in all, there is little indication that we are on the verge of a major price breakdown," said Edward Meir, analyst at broker MF Global.

He said a production increase from Saudi Arabia, revealed on Friday, was only "token" in terms of extra production.

Saudi Arabia's oil minister, Ali al-Naimi, said in Riyadh on Friday that the country would lift production by about 3.3 percent to 9.45 million barrels a day in June.

That gain will not subdue prices because they have been driven higher by the weak U.S. dollar and not supply, the OPEC president said.

"OPEC seems pretty happy with production where it is," said Tom Bentz, a broker at BNP Paribas in New York. "The Saudi announcement of a 300,000 barrel-a-day production gain is not enough to send prices lower, it's not a huge amount."

Crude oil for June delivery declined 26 cents to $126.03 a barrel Monday on the New York Mercantile Exchange. The contract climbed to $127.82 Friday, the highest since trading began in 1983. Prices are 94 percent higher than a year ago.

Prices last week were also helped by publication of a bullish price forecast from investment bank Goldman Sachs.

London Brent crude was down 53 cents at $124.46 a barrel.

President George W. Bush said on Saturday that he was pleased with the Saudi move, but it was not enough to solve problems in the top energy consumer the United States.

Comments by OPEC oil ministers on Monday all highlighted their belief that global oil supplies are enough to cope with demand.

The Qatar oil minister Abdullah al-Attiyah said there was no need to raise oil supplies to global markets. "The market doesn't need more oil," he said, pointing to a cut in forecast oil demand growth by the International Energy Agency.

"There is more oil in the market than consumers want," said the Iraqi oil minister Hussain al-Shahristani.

Iraq aims to lift total oil exports to 2.3 million barrels per day from 2.0 million by the end of the year, he said.

Separately, the U.S. Energy Department said last week that it would not proceed with plans to increase deliveries of oil to the Strategic Petroleum Reserve. The department is currently filling the reserve at a rate of about 68,000 barrels a day.

"Some people thought the Saudi announcement that they were increasing output and the Energy Department saying that deliveries to the SPR will end might be enough to calm the market," said Eric Wittenauer, an energy analyst at Wachovia Securities in St. Louis. "It doesn't look like that's the case."

OPEC signals reluctance to lift oil output - International Herald Tribune

Oil Trades Above $126 on Dollar Weakness, Commodities Demand

Crude oil traded above $126 a barrel in New York on speculation supply risks and weakness in the U.S. dollar will sustain investor demand for the commodity.

Oil reached a record $127.82 on May 16 after the dollar dropped the most in a month and Goldman Sachs Group Inc. raised its price forecast, citing supply constraints. Prices are being driven by speculation and won't be affected by Saudi Arabia's planned 300,000 barrel production increase, Iraqi Oil Minister Hussain al-Shahristani said yesterday.

``There's a lot of money sort of pushing oil through to the levels it's at,'' Ben Barber, a broker at Bell Commodities in Melbourne, said in a Bloomberg ********** interview. ``This steep rise is a short-term thing'' and the Federal Reserve will act to support the U.S. dollar from here, he said.

Crude oil for June delivery was at $126.62 a barrel, up 33 cents, in after-hours electronic trading on the New York Mercantile Exchange at 9:15 a.m. in Sydney.

The contract rose $2.17, or 1.7 percent, to $126.29 on May 16, the highest close since the futures began trading in 1983. Prices retreated from the earlier record after Saudi Arabia, the world's biggest oil exporter, said it will raise daily output to 9.45 million barrels next month after requests from customers.

The June contract expires at the end of trading tomorrow. The more-widely held July contract was at $126.10 a barrel today, having gained 1.8 percent to $126.04 on May 16.

Bloomberg.com: Canada

Iraqi delegation attends Economic Forum

An Iraqi delegation including Vice President Adel Abdul Mehdi and deputy Prime Minister Barham Saleh as well as Foreign Minister Hosheyar Zebari participated in the economic forum for the Middle East and North Africa which started on Sunday night in Sharm Sheikh resort in Egypt. The Iraqi delegation met with US President George W Bush and discussed with him the latest developments in Iraq and the Middle East. Following the meeting, Saleh affirmed that Bush has stressed in the meeting on his country’s support to the Iraqi Government in its war against terrorism and foreign interference in order to push the political process forward and upgrade Iraq’s economy and development.

Iraqi delegation attends Economic Forum | Iraq News | Alsumaria Iraqi ********* TV Network

That's 3 Economic or Investment Forums in as many days!

Global oil supply above demand - Iraq Oil Minister

Egypt (Reuters) - Global oil supply is already higher than demand so if OPEC pumped more it would not reduce the price, Iraq's Oil Minister Hussain al-Shahristani said on Monday.

"There is more oil in the market than consumers want," Shahristani told Reuters. "What is driving up prices is an increase in speculative funds. An increase in production by OPEC countries would not really change the scenario -- it would not affect the price."

Iraq aims to boost total oil exports to 2.3 million barrels per day (bpd) from 2.0 million bpd by the end of the year, Shahristani said. Basra exports in the south would rise 200,000 to 300,000 bpd while exports of Kirkuk oil in the north would rise around 100,000 bpd, he added.

Iraq expected to sign a gas deal with Royal Dutch Shell this summer.

Some oil service deals with oil majors were also ready to sign in June, although others were still incomplete, he added.

Shahristani confirmed that Iraq was also in talks with a consortium of Anadarko, Vitol and Dome for a service contract on the Luhais field.

Global oil supply above demand - Iraq oil minister | Business News | Reuters&

Baghdad hosts three important meetings

Next few hours would witness holding three important meetings of political leaders at new efforts to support Govt. to prompt the political process and security situation

The meetings would be attended by ****utive council's members "President Jalal Talabani, PM Noori Maliki and Vice President Tareq Hashemi", as well as another meeting of the national security council.

Meanwhile, PM Maliki declared that his Govt. would carry out local elections at various dates, not at one day, to ensure protecting electorates and the voting's fairness, Maliki said at his meeting with UN's envoy in Iraq Stephan De Mistora.

ÌÑíÏÉ ÇáÕÈÇÍ - Baghdad hosts three important meetings

Bahrain will send ambassador to Baghdad

Bahraini foreign minister Sheikh Khalid Bin Ahmed Bin Mohamed Al-Khalifa declared during a meeting with Ahmed Shfiq Al-Aga Charge d' Affaires of Iraqi Embassy in Manama decision of nominating Bahraini ambassador in Baghdad before end of this month.

During the meeting, the minister confirmed Bahrain's standing with Iraq to fight terrorism and enhancing good ties between the two countries.

For his part Al-Aga expressed Iraq's appreciation to Bahrain's standing by Iraq, stressing keen on establishing based ties with the kingdom.

ÌÑíÏÉ ÇáÕÈÇÍ - Bahrain will send ambassador to Baghdad

Update......

More Confirmation from 'The Times' - Iraq could have largest oil reserves in the world

Iraq dramatically increased the official size of its oil reserves yesterday after new data suggested that they could exceed Saudi Arabia’s and be the largest in the world.

The Iraqi Deputy Prime Minister told The Times that new exploration showed that his country has the world’s largest proven oil reserves, with as much as 350 billion barrels. The figure is triple the country’s present proven reserves and exceeds that of Saudi Arabia’s estimated 264 billion barrels of oil. Barham Salih said that the new estimate had been based on recent geological surveys and seismic data compiled by “reputable, international oil companies . . . This is a serious figure from credible sources.”

The Iraqi Government has yet to approve a national oil law that would allow foreign companies to invest. Mr Salih said that the delay was damaging Iraq’s ability to profit from oil output, robbing the country of potentially huge revenues. With oil selling for more than $125 dollars a barrel and demand rising, Mr Salih is frustrated that Iraq still struggles over the establishment of a regulatory framework. “There is a real debate in the Government and among political leaders about the type of oil management structures we should have. I am for liberalising this sector and allowing the private sector to come in to develop these vast resources.”

BP, Exxon Mobil, Chevron, Royal Dutch Shell and Total have been queuing for rights to exploit Iraqi reserves. Mr Salih confirmed that Iraq was negotiating the outlines of two-year deals with some of the companies. He was optimistic that a draft law could be approved in the near future.

“We need to recognise after so many decades of mismanagement of the oil industry that we need to call a spade a spade,” he told a group of delegates at the World Economic Forum in Sharm el-Sheikh. “We can regulate it, but we need private investment to develop Iraq’s production capacities.” He said that Iraq was pumping 2.5 million barrels of oil a day at present, earning about $70 billion (£35.9 billion) in revenue this year.

The price of oil bounced back to record highs yesterday when Opec refused to increase supplies following Saudi Arabia's promise to the US that it would provide an extra 300,000 barrels a day. In New York, the price of light, sweet crude for June delivery rose from $125.92 to US$126.35. In London, Brent crude for July delivery was up 82 cents at $125.81 per barrel.

Iraq could have largest oil reserves in the world - Times Online