DINAR REVALUATION UPDATE: THE COMMITMENT OF IRAQ WITH THE OPEC+ ALLIANCE, 28 AUGUST

 Objectives of the Visit

OPEC Secretary General's Visit to Baghdad in August 2024

The Secretary-General of OPEC, Haitham Al-Ghais, embarked on a two-day visit to Baghdad in August 2024. The visit aimed to strengthen bilateral communication on developments in the oil market and to foster cooperation within OPEC and OPEC Plus. 

Al-Ghais's trip to Baghdad was part of a broader effort to enhance and expand the horizons of cooperation in OPEC and OPEC Plus. 1 This included discussions on strategies to maintain stability in global oil markets and ensure that member countries adhere to agreed-upon output cuts. 6

Bilateral Talks

During his visit, Al-Ghais was scheduled to meet with Iraq's Oil Minister and other officials to discuss ongoing efforts to stabilize oil prices and production levels. 1 These discussions were crucial in reinforcing Iraq's commitment to the OPEC+ alliance's decision to voluntarily reduce crude oil production. 6

Iraq's Commitment

Iraq has been a key player in the OPEC+ agreement, renewing its commitment to the output cut agreement in August 2024 . 6 The Ministry of Oil stated that it had taken real and tangible steps to reduce production levels while working to compensate for previous overproduction. 6

Conclusion

Al-Ghais's visit to Baghdad in August 2024 was pivotal for strengthening cooperation within OPEC and OPEC Plus. It provided a platform for bilateral talks on market strategies and highlighted Iraq's renewed commitment to the OPEC+ output cut agreement, emphasizing the country's role in global oil market stability. 1

OPEC Secretary General arrives in Baghdad, 28 AUGUST

   OPEC Secretary General arrives in Baghdad

The Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC), Haitham Al-Ghais, arrived in Baghdad on Wednesday.

The official spokesman for the Iraqi Ministry of Oil said in a statement today, August 28, 2024, "The Secretary-General of the Organization of the Petroleum Exporting Countries, Haitham Al-Ghais, arrived in Baghdad on a two-day visit."

He added, "The visit comes within the framework of bilateral communication on developments in the oil market, in addition to enhancing and expanding the horizons of cooperation in the Organization of the Petroleum Exporting Countries (OPEC) and OPEC Plus."

The ministry spokesman said, "Al-Ghais's visit schedule includes meeting with the Iraqi Oil Minister and a number of Iraqi officials."

Sabah Subhi, a member of the Oil and Gas Committee in the Iraqi Parliament, had previously told Kurdistan 24, “Iraq has exceeded its share of oil exports in OPEC, and must reduce its exports next year. Therefore, Iraq is obstructing all attempts to resume the export of oil from the Kurdistan Region.”

Sabah Subhi added, "The Iraqi Ministry of Oil is obstructing all attempts to resume the export of oil from the Kurdistan Region."

He explained that "Iraq exceeded its share of oil exports in OPEC by 1.4 million barrels out of the 3.6 million barrels allocated to it," adding that "OPEC has repeatedly warned Iraq against exceeding its share of oil exports."

As of March 25, 2023, crude oil exports from Kurdistan fields and Kirkuk province to Turkey via the Turkish port of Ceyhan have been halted.

In addition to suspending all oil activities of foreign companies operating in Kurdistan fields, after the decision of the International Arbitration Court in Paris that these exports are illegal.

This decision comes as a result of a lawsuit filed by the federal government against Turkey at the International Court of Arbitration in Paris in 2014, due to its allowing the flow of Kurdistan oil into its territory and its export without Baghdad’s approval.

According to an agreement concluded between Baghdad and Ankara in 2010, the State Oil Marketing Organization (SOMO) is the only entity authorized to export, market and sell Iraqi oil in global markets.

Kurdistan used to export 450 thousand barrels daily to Turkey, to secure the salaries of its employees and its financial revenues, due to the absence of an oil and gas law regulating the management of oil wealth in Iraq.

On April 4, 2023, Erbil and Baghdad reached an interim agreement until the Iraqi parliament passes the oil and gas law.

This agreement stipulated that the Kurdistan government would hand over 400,000 barrels per day to SOMO, form a joint four-party committee to oversee the sale of oil in global markets, open an independent account at the Central Bank to deposit financial revenues, and appoint a representative from the regional government as Deputy Director General of SOMO.  link

LATEST FROM WOLVERINE : "IT'S ALL LOOKING BEAUTIFUL" BY WOLVERINE, 28 AUGUST

 WOLVERINE
Tues. 27 Aug. 2024 Wolverine:

 “I have a definite confirmation on a Farm Claim being paid that came in today. This thing is moving forward.” … “It’s all coming. Sorry to cancel the call, but there’s been a hiccup. This is the week we’ve been waiting for. It might be in an hour, or tomorrow.

 It’s all looking beautiful.

  This is our week.”… “Most Whales have had all contracts signed and everything is ready to go. 

I spoke to one personally and he was very emotional as he has been waiting for this for 30 years.

 He has a huge project to help humanity. Get ready everyone as this is it and it’s real this time now and no hopium as people say it is. God bless you all. Wolverine.”

Iraq's Budget Crisis: Import Spending Soars!

DINAR REVALUATION UPDATE: THE IMPORTANCE OF STABILIZE THE ECONOMY & THE MULTI-YEAR BUDGETING APPROACH , 28 AUGUST

 Iraq's Budget and Import Spending in August 2024

Iraq, heavily reliant on oil revenues, allocates a significant portion of its budget to imports, a practice that has persisted over the years. 1 As of August 2024, it is reported that the country spends nearly half of its budget on purchasing goods and services from abroad. This expenditure pattern underscores Iraq's need to import a wide range of products that it cannot produce domestically. 1

Major Import Suppliers

The countries at the forefront of supplying Iraq with these imports have been identified as major trading partners. These nations play a crucial role in fulfilling Iraq's demand for various commodities and manufactured goods. 5 The specific list of top suppliers varies based on the type of goods and services Iraq requires and the prevailing trade agreements at any given time.

Impact of Import Spending

The high import spending has implications for Iraq's economy and budgetary planning. It affects the country's trade balance, potentially leading to a trade deficit if imports significantly outweigh exports. Moreover, the reliance on imported goods can stifle the growth of local industries and businesses, which might struggle to compete with foreign products.  1

Budgetary Measures

In an attempt to address budget rigidities and manage fiscal space, the Iraqi government has implemented various measures. These include the introduction of a multi-year budgeting approach by Prime Minister Muhammad Shia' Al-Sudani, encompassing the fiscal years 2023-2025. 2 Such measures aim to enhance long-term planning and economic stability.

Economic Recovery and Oil Sector

Despite efforts to stabilize the economy, Iraq's recovery has been hindered by factors such as oil production cuts and disruptions in the oil sector. The OPEC+ supply restrictions have led to a decline in oil output and exports, which in turn affects Iraq's main source of revenue and GDP. 4

Iraq spends half of its budget on imports, and these countries are at the forefront of suppliers, 28 AUGUST

 Iraq spends half of its budget on imports, and these countries are at the forefront of suppliers

The Ministry of Planning revealed "the volume of Iraq's annual imports."

The Ministry's spokesman, Abdul Zahra Al-Hindawi, said in a statement to the official media, that: “Iraq imports many goods and merchandise from various countries of the world, including foodstuffs of various kinds and shapes, including electrical, construction, engineering, chemical, agricultural, medical, health supplies, and cars.”

He added, "The volume of annual imports reaches no less than 50 billion dollars."

He continued, “Iraq imports from the countries: Jordan, Turkey, Iran, Saudi Arabia, the Emirates, China, India, Japan, Brazil, the United States, and a number of European countries   link

Coffee with MarkZ. 08/28/2024

Thank you MarkZ for all your time, and encouragement daily….. PDK

MarkZ  Update- Some highlights by PDK-Not verbatim

MarkZ Disclaimer: Please consider everything on this call as my opinion. People who take notes do not catch everything and its best to watch the video so that you get everything in context.  Be sure to consult a professional for any financial decisions

Member: Good morning Mark and peeps. Is today the day?

​​Member: Hard times can lead ordinary people to achieve extraordinary things.

Member: This has been a crazy quiet week so far

Member: Bruce big call said maybe this weekend?

Member: Well this is a Three Day Weekend ...

Member: Sky Prince is calling for it to start within 24 hours

MZ: A lot of people calling for it to start within 24 hours. 

MZ: There is a whole lot of chatter with groups who are expecting money movement at any moment or over the weekend.

Member: Are redemption Center staff working this weekend?

MZ: Don’t know yet….I will find out closer to the weekend. The rumors out of the groups are everybody will be working this weekend.  Group leaders are all charged up and ready. 

MZ: We heard rumors it was happening Monday Night…than last night….now the rumors are for this weekend. I won’t get excited until I know real people with spendable money in their pockets.

Member: Last I heard, everyone was waiting on everyone else to pull the trigger.

Member: I wonder what exactly are they waiting on????

Member: I don't care who is right 1st... Only that this blessing arrives.

MZ: Think of it this way….As a bubble. You when you are blowing a balloon ..sooner or later it’s going to pop. That is where we are not. We continue to put air in the bubble …and we know its inevitable it’s going to pop….We just don’t know exactly which puff will pop it. 

MZ: When you play hot potato…everyone knows it will go off. They don’t know who is holding the hot potato when it does. I am as frustrated as you all are. 

Member: If farm claims are being paid….We know things are moving…We are just in a long line waiting for our turn. 

Member:  Usually when you are at the end- its very quiet on purpose- then things start to go like hotcakes. 

Member: Slowly, Slowly, SUDDENLY

MZ: I think we are finally at the suddenly part. 

MZ: Jim Rickards is looking for a crash to start as early as today. 

Member: Will Afghanistan be in the first basket?

MZ: I do not think Afghanistan is ready to go in the first basket.

Member: I am just praying the Venezuelan Bolivar is in it……

Member: Anything new on HCL or bonds?

MZ: unfortunately nothing new. But we hear Al Alaq (Governor of the CBI)is to go from New York to DC today . We are hopeful it means something….

Member:  Al-Sudani announces the completion date of the first phase of Al-Faw Port: It will be a qualitative addition to the region

Member: Did you see Warren Buffet dump a pile of BOA stocks?

​​Member: BREAKING: Warren Buffett sold another $981 million in Bank of America shares.

Member: My moms credit union only gave her 10 checks. She asked is it because of the RV? The lady just smiled and winked

Member: Thanks Mark and Mods…..everyone have a wonderful day

THE CONTENT IN THIS PODCAST IS FOR GENERAL & EDUCATIONAL PURPOSES ONLY&NOT INTENDED TO PROVIDE ANY PROFESSIONAL, FINANCIAL OR LEGAL ADVICE. PLEASE CONSIDER EVERYTHING DISCUSSED IN MARKZ’S OPINION ONLY