"Coincidence" plays a role with the Sudanese government and strengthens public finances[You must be registered and logged in to see this link.] |Today, 11:1[You must be registered and logged in to see this image.]
Baghdad today - Baghdad
It seems that "coincidence" plays a major role in the government of Prime Minister Muhammad Shiaa Al-Sudani, from the success of Gulf 25, which was geared in its favor, to the public finances that will rebound with the rise in global oil prices.
Today, Saturday (September 23, 2023), the American bank JPMorgan predicted that the currently high oil prices have the potential to increase further in the coming period, and that Brent crude may rise to $150 per barrel.
According to Christian Malik, an analyst at the American bank, production capacity shocks in the near to medium term, and a shift away from investments in the hydrocarbon sector, may eventually lead the price of Brent crude to $150 per barrel. [You must be registered and logged in to see this image.]
"A pleasant coincidence"
For his part, economic expert Abdul Rahman Al-Mashhadani revealed, today, Saturday (September 23, 2023), a “pleasant coincidence” for the Sudanese government.
Al-Mashhadani told “Baghdad Today” that “it is an unexpected coincidence that global oil markets are witnessing a rise,” noting that “in recent months, despite all expectations, they were completely opposite, especially in the last third of 2023, because eyes were turning to the emergence of an economic crisis.” .
Al-Mashhadani adds, "Iraq's monthly revenues have risen from $7 billion to $9 billion, and are increasing with the rise in oil selling prices, which means it is a pleasant coincidence for the Sudanese government and will contribute to greater fortification of public finances."
The economic expert points out that “the delay in disbursing the general budget, whose actual implementation has not yet begun, will prevent its electoral exploitation, in addition to the possibility of rotating the funds until 2024, which means the continuation of disbursement to projects without interruption, given that the budget is for three consecutive years.”
A noticeable increase
At a time when investors and traders in the oil sector are focusing on the rise in oil prices, which have approached $100 per barrel, some crude oils are already trading above this level, which highlights expectations of scarcity of supply.
Data from the London Stock Exchange Group indicated that the price of Nigerian crude KwaEboe exceeded $100 per barrel.
Bjarne Schildrup, an analyst at Swedish bank SEB, said in a report that Malaysian Tapis crude oil reached $101.30 last week.
Oil rose to its highest levels in 2023 as investors focused on the possibility of tight supplies in the fourth quarter of the year after Saudi Arabia and Russia extended supply cuts.
The price of “KwaEbue” Nigerian crude, and some other crudes priced against Brent, already exceeds $100 because it is based on the dated Brent crude price, as well as the cash spread or premium, which the stock exchange currently estimates at about $4.25 per barrel.
Schildrup said that it is highly likely that Brent price will move above $100, as “a rise above that only needs noise.”
Swiss bank UBS also expects Brent crude futures to reach numbers in the hundreds.
Source: Baghdad Al-Youm + agencies