Oil Equality.. Is Iraq Outside Profit And Loss Calculations?, 11 AUGUST

Oil Equality.. Is Iraq Outside Profit And Loss Calculations?

Money and business  Economy News – Baghdad  Observers have warned of the fluctuations witnessed by the American economy and their repercussions on the global economy, especially on energy markets, but they confirmed at the same time that oil price indicators are still stable despite these fluctuations, and Iraq is outside the calculations of profit and loss in the fluctuations of the oil market, due to its reliance on the rentier economy.

While economic circles around the world were surprised by the sharp fluctuations and declines in the US stock market amid a wave of panic over fears of a possible recession in the world’s largest economy, the US economy, the main financial indicators witnessed a decline, including the Dow Jones Industrial Average of major US industrial companies, by about 1,000 points at once.”

Oil prices fell slightly in early Asian trading on Friday, but were set to post gains of more than 3 percent this week after U.S. jobs data eased demand concerns and continued concerns about a widening conflict in the Middle East.

Brent crude futures were down 9 cents, or 0.11 percent, at $79.07 a barrel by 0030 GMT, while U.S. West Texas Intermediate (WTI) crude futures were down 1 cent at $76.09 a barrel.

However, both crudes are on track to post gains of more than 3 percent on a weekly basis.

Gaza and Israel

Israeli forces intensified air strikes on the Gaza Strip on Thursday, killing at least 40 people, Palestinian medics said, as they brace for the possibility of a wider war in the region.

“Crude oil continued to recover from its latest slide as markets focused on escalating geopolitical risks,” said Daniel Hynes, analyst at ANZ.

Libya's National Oil Corporation also provided some support when it declared force majeure at the Sharara oil field, saying the field's production was being gradually reduced due to protests.

Prices rose after data showed the number of Americans filing new claims for unemployment benefits fell more than expected last week, suggesting that fears of a deteriorating labor market were overblown.

The dollar rose after the jobs data. A stronger dollar typically reduces oil prices because buyers using other currencies have to pay more for dollar-denominated crude.

The financial and economic advisor to the Prime Minister, Mazhar Mohammed Saleh, expected oil prices to recover after a rapid decline in global markets in recent days.

Huge losses

Saleh said, "The drop in oil prices will cause a huge loss in the investments of American oil companies operating in the field of extracting shale oil if global oil prices fall below $70 per barrel, which will cause their operations to falter."

He pointed out that “the US monetary policy is expected to inevitably move towards an expansionary policy to confront the current recession, led by the quantitative easing policy through the possibility of the Federal Reserve reducing interest and stimulating liquidity to confront the challenges of the deterioration of the US economy and provide the necessary protection for financial investors in particular against the collapse of financial markets, including futures markets operating with crude oil contracts.” crossorigin="anonymous">

Saleh explained that “all of these factors will shorten the paths of the oil asset cycle’s decline so that the oil markets can recover, if that cycle occurs and leads to a decline in oil market prices.”

What's behind the rise?

Oil prices rose to $79 a barrel after Brent crude fell to a seven-month low on Monday, tracking a decline in global stock markets.

Futures are set to snap a four-week losing streak, with Libya’s largest field out of action, U.S. inventories falling for a sixth week and Ukrainian incursions into Russia exacerbating the upside.

Meanwhile, jet fuel demand is improving in China, a rare bright spot after months of bearish signals, including data this week that showed the world’s biggest crude importer took in the fewest barrels in almost two years in July. 120 views  2024/08/10 -https://economy-news.net/content.php?id=46121