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Shafaq News/ As part of the agreement between the Kurdistan Region and Baghdad, the Iraqi government approved sending 400 billion dinars to finance the employees' salaries.
A source told Shafaq News Agency that the federal government would send the funds for November and December salaries.
Negotiations are underway between the two sides to resolve the differences, including oil, the fiscal budget, and the Peshmerga deployment in the disputed areas.
During the Government of former Prime Minister Adel Abdul Mahdi (2018-2020), both sides concluded an agreement that requires Baghdad to pay all the salaries of the Kurdistan Region for the first time since 2014. In return, Erbil would deliver the revenue of 250,000 barrels of oil out of nearly 500,000 barrels that Kurdistan exports independently.
Baghdad said Erbil did not adhere to this agreement almost wholly, while the Kurdish Government confirmed that it fulfilled its promises.
In May 2020, the former PM Mustafa Al-Kadhimi decided to stop paying the salaries of the Region's employees, amounting to nearly 500 million dollars per month, due to the financial crisis.
Consequently, the Region's senior officials, including President Nechirvan Barzani and Deputy Prime Minister Qubad Talabani, visited Baghdad frequently to find solutions, but to no avail.
Another part of the disagreement is the disputed areas.
The Iraqi army forces regained in October 2017 control of the Kirkuk Governorate and the disputed areas, extending across a strip starting east from Diyala, passing through Saladin, and reaching southwest of Nineveh.
The Iraqi Kurdistan used to keep control over all those areas after the collapse of the Iraqi army in 2014 following the attack by ISIS.
Since 2017, security in Kirkuk and the disputed areas has been maintained through multiple federal forces, including the army, the federal police, the counter-terrorism service, and Popular Mobilization Forces.
An announced agreement between Baghdad and Erbil stipulated that four joint security centers be formed in the disputed areas in Kirkuk, Diyala, Makhmur, and Mosul, to cover the vacuum areas between the army and the Peshmerga to prevent ISIS activities. However, the agreement is now suspended, and both sides accuse each other of a lack of responsiveness.
Now, with a new round of talks, many future scenarios are posed for the relationship. But hope was raised by forming a new federal government head by Muhammad Shia'a Al-Sudani.
hxxps://www.al-monitor.com/originals/2022/12/iran-looms-large-over-iraqi-pms-reform-agenda
When Iraqi Prime Minister Mohammad Shia al-Sudani speaks about battling corruption, implementing long overdue economic reforms or getting an elusive oil law done with the Kurdistan Region, you get the sense that he means it.
Sudani is undaunted despite the headwinds and is pressing ahead with his expansive agenda. He has a big idea for a deeper partnership with Turkey to supply gas and energy to Europe and is upbeat regarding prospects for an oil law between Baghdad and Erbil. He says that it is in Baghdad’s interest that Iraqi Kurdish parties settle their dispute and reach agreement with Baghdad. The next two weeks are critical, as negotiators are in the home stretch on an Iraqi budget. With the Framework commanding a majority in parliament, there is a chance that reforms could be passed as laws.
Source: Iraqi Parliament to approve 2023 budget of 140 trillion dinars soon
Iraq's Parliament will approve the 2023 budget of 140 trillion Iraqi dinars in the coming days as the country wrestles with an economic and financial crisis.
A source in the Parliamentary Finance committee, Mouin Al-Kadhimi, revealed to Shafaq News Agency that Prime Minister Muhammad S. Al-Sudani directed the minister of finance to complete the 140-trillion-dinars budget law to approve it and then refer it to the Parliament.
hTtps://shafaq.com/en/Economy/Source-Iraqi-Parliament-to-approve-2023-budget-of-140-trillion-dinars-soon
Parliamentary Committee: A proposal to establish three oil and gas companies
Economic News Agency - Parliamentary Committee: A proposal to establish three oil and gas companies (economy-news.net)
Economy News - Baghdad
The Parliamentary Oil and Gas Committee revealed on Monday proposals within the draft oil and gas law, to establish three companies, including the Kurdistan Oil Company, while stressing that the law will guarantee the rights of all producing provinces, led by Basra.
Committee member Ali Shaddad al-Fares told the official news agency that "the government of Prime Minister Mohammed Shia al-Sudani has taken a step forward in the oil file with Kurdistan by activating the Supreme Committee concerned with negotiating with the regional government, which is chaired by Deputy Prime Minister and Minister of Planning, and the membership of the Minister of Oil, the director of SOMO, the head of the Border Ports Authority and some advisers and experts," pointing out that "the committee will be strongly activated, and will be followed up by the Parliamentary Oil and Gas Committee."
Al-Fares added that "there is no solution for the regional government but to sit at the table of the Supreme Committee to reach the draft oil and gas law after the Federal Court's decision on the illegality of the oil and gas law in Kurdistan," noting that "the law will regulate the relationship between the federal government and the provinces and regions producing oil and gas."
"Europe agrees to cap the price of Russian oil at $60 a barrel."
London CNN Business — "The European Union has reached a consensus on the price at which to cap Russian oil just days before its ban on most imports comes into force."
There's a lot going on in the oil markets over the next few days with this $60 cap on the price of a barrel of Russian crude and the embargo on seaborne cargoes to Europe coming into effect along with the OPEC+ meeting starting on Sunday.
Nobody knows how it's all going to pan out so there'll be a lot of volatility.
“Traders will be hesitant to be short over the weekend if there are growing rumblings that OPEC might try to shock and awe the market at their weekend meeting,” said Phil *****, an analyst at Price Futures group."
hTTps://edition.cnn.com/2022/12/02/energy/russia-oil-price-cap-europe/index.html
KRG Spokesperson: we are ready to revisit Baghdad to solve the problems.
Shafaq News 2022-11-30
"On Wednesday, the Kurdistan Regional Government (KRG) spokesman, Jutiar Adel, provided new details of the discussions with the federal government.
Adel told Shafaq News Agency, "Based on the constitution, We discussed many files, including the budget, oil, border crossings, and financial control…we delivered all the KRG expenditures."
"The meetings would continue, and the Kurdish government delegation is ready to revisit Baghdad if necessary." He said.
Adel hoped to reach the Region's share and resolve all outstanding issues.
Today, a joint committee from Kurdistan's regional and Iraq's federal governments convened a meeting in the Iraqi capital, Baghdad, to find common ground on the differences between both sides.
The media department of the Kurdistan Regional Government (KRG) said that the meeting emphasized the role of the constitution and the new federal government's program in addressing the Baghdad-Erbil differences.
"The meeting discussed issues related to oil, budget, financial oversight, and border-crossings," it said, "the meetings will continue until a final solution is reached."
hTtps://www.shafaq.com/en/Iraq-News/KRG-Spokesperson-we-are-ready-to-revisit-Baghdad-to-solve-the-problems
KDP lawmaker says al-Sudani's government ushers a new era of Baghdad-Erbil ties
(Shafaq News 30.11.22)
"Mohammad Shia al-sudani's government has ushered a new phase of the Baghdad-Erbil ties, a member of the Kurdistan Democratic Party's bloc in the Iraqi parliament said on Wednesday.
"The relation between the federal and regional governments has been governed by the Iraqi constitution since 2005," Lawmaker Meriwan Qarni told Shafaq News Agency, "the federal government, however, did not commit to its side of the deal since 2014. Its rights have been only partially realized."
"After the agreement signed by the State Administration Coalition and the subsequent formation of al-Sudani's cabinet, a new era has begun," he said, "al-Sudani's government is willing to settle many disputes.z
The member of the parliament's defense and security committee said that al-Sudani's cabinet will proceed with enacting a hydrocarbons law and enlist the Peshmerga forces on the government payroll in the 2023 budget.
"If al-Sudani manages to fulfill his promises within this timetable, I expect a bright future for the ties between the two governments," he concluded."
hTtps://shafaq.com/en/Iraq-News/KDP-lawmaker-says-al-Sudani-s-government-ushers-a-new-era-of-Baghdad-Erbil-ties
Oil Price Could Hit "Stratospheric" $380 If Russia Retaliates To G7 Oil Price Cap: JPMorgan
BY TYLER DURDEN
As discussed previously, one of the most notable events of the past was the decision by G7 leaders "to work" on a price cap for Russian oil as part of efforts to cut Moscow’s revenues.
However, it didn't take long for the same G7 motley crew to realize that they have a major problem on their hands: as JPM's commodity desk notes, given Russia’s strong fiscal position, the country can cut up to 5 mbd of production without excessively hurting its economic interest. Meanwhile, a 5mbd cut would spark a Europe-wide depression, confirming that once again Europe had not even done the simple math.
What about prices? According to JPM's commodities team (whose full note is available to pro subscribers), given the high levels of stress in the oil market, a cut of 3.0 mbd could cause global Brent price to jump to $190/bbl, while the most extreme scenario of a 5 mbd slash in production could drive oil price to a stratospheric $380/bbl.
JP MORGAN - The Outlook for Oil
High natural gas prices are also fuelling demand for oil, especially among industrial consumers. “Shortages of natural gas in Europe and the resulting spike in global LNG prices should trigger significant switching to other sources of energy. We increase our total estimates for additional oil demand from gas-to-oil switching by 700 kbd from October 2022 through March 2023,” said Natasha Kaneva, Head of Global Commodities Strategy at J.P. Morgan.
However, the upside risk to oil prices have eased in recent weeks as global growth is slowing and European natural gas prices have come down from historic highs. “We peg the gas-to-diesel switching price at 150 EUR/MWh, but today at 113 EUR/MWh, benchmark Dutch TTF gas price is at about a third of its peak in August, largely due to mild weather, strong LNG imports and rising stockpiles,” said Kaneva.
Meanwhile, the forthcoming U.S.-led price cap on Russian oil exports could send shockwaves through the global oil market. J.P. Morgan Research’s baseline view is that Russia will not comply with the price cap and will try to find alternative buyers for its oil. However, the price cap mechanism has created apprehension among market participants, limiting the availability of buyers and ships needed to move Russian oil. “Russia will likely eventually be able to source sufficient tanker capacity to deliver its oil, but not just yet. Today, we believe the country is at least 1 mbd short, necessitating production cuts,” added Kaneva.
As such, assuming that the oil market tightens into year-end and that the global economy avoids a recession, J.P. Morgan Research maintains that global Brent oil price will average $101/bbl in 2H22 and $98/bbl in 2023.
Oh groan - more 'advice' from 'Cheap Condescending Claptrap'.............
While I actually agree with your comments in your first paragraph about yet more troubling matters around Kurdistan, not helped by the recent suicide bombing in Turkey 'allegedly' by the PKK, and Turkeys response to it, your second para is ( as I alluded to ) nothing but cheap condescending claptrap.
This thick skinned old codger doesn't give a monkeys #### what you or a few others of the same ilk think about me - so take your 'fatherly advice' and put it where the sun doesn't shine......
Laters......
"Victor384 would rather copy and paste conspiracy speculation than do a little digging."
Quite frankly ladies and gents, I have far too much serious stuff going on in my own personal life right now....
I don't have the time ( nor quite frankly the inclination, nor desire ) to 'dig deeply' about anything relating to GKP right now - and ( really ? ) what would it achieve anyway ? What will be will be.......
When I do have some spare time, I just post up ( yes frequently copy and paste ! ) any litle snippets for others to peruse and make their own minds up, whether they personally regard them as 'BS' or not....... As I have said I am neither a 'ramper' nor a 'de-ramper'
'conspiracy speculation' - that's your take on this - but I'd suggest not the opinion of all others.
Regards GKP - as I have frequently said - what will be will be ! - NOTHING ( ABSOLUTELY nothing ) said / written on here will be of any real consequence to the final outcome of GKP............
I'll just wait until the inevitable( imho opinion ) payday - whenever that is !
Goodnight...........
Hi 'Rhena'
I wasn't going to even bother responding to your post ( especially on a Friday evening ) but your comments irked me a tad......
'grow up ? ' - Rather condescending comment ? - but I think if you really knew me ( like some on here do ) you wouldn't say that - I've been invested here since 2010, and a member on here since then ( albeit under a different name ). And at my age I'm probably longer in the tooth than you are....
I'm not a 'ramper' nor a 'de-ramper' - and I've repeatedly maintained that the future of GKP has always been down to one thing - the POLITICS !
That said - I try keep an OPEN mind, and if that means looking at numerous posts ( either supposedly ramping or de-ramping ) I read them, and if I think others 'may' want to at least see them, I post them on ( from another board if need be ! ). I don't know if you have even completely read the post that irked you so much, but are you not even curious as to who Landsdowne are holding for, through 'thick and thin' - and more importantly WHY ?
This may be just 'BS' as you say - but do you really know for sure ?
As you say - we are grown-ups here - so people can make their own ***ing minds up ! .... It's not your position to make up their minds for them.
POLITICS my dear chap - POLITICS !
And I'm absolutely NOT going to get into a repetative game of 'ping pong' here - I posted a link for people to peruse ( or not ) if they so desire - as adults it's entirely their choice what they make of it. You responded to that post, and I have replied to your barbed comments - if you don't like my final response to you - well just take a run and **** off.......
Life's too short.
HTTPS://twitter.com/ChicagoJack5/status/1593583292300894215?s=20&t=Hbg8haMJjG5_9h3WfEB23Q