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Al-Sudani’s statement to convert 40% of Iraq’s exports into derivatives.. What does it have to do with raising the prices of the enhancer?
Economy |04-18-2024, 21:47 |
Baghdad today - Baghdad
Prime Minister Muhammad Shiaa Al-Sudani announced today, Thursday (April 18, 2024), that his
government has developed a plan to convert 40% of Iraq’s “crude” oil exports into “derivatives,” in a statement that requires stopping and reading.
According to the economic and statistical section in “Baghdad Al-Youm,”
Iraq exports 3.3 million barrels of oil per day, with revenues amounting to more than 250 million dollars per day.
By making 40% of exports oil derivatives, this means that Iraq must export oil derivatives worth $100 million per day.
While the price of a liter of gasoline or kerosene is approximately one dollar per liter globally, this means that
Iraq must export at least 50 million liters of gasoline and the same amount of kerosene, which means more than 100 million liters per day.
In contrast, Iraq's total consumption of gasoline and kerosene amounts to 55 million liters of gasoline and kerosene.
This means that Iraq's total production of petroleum derivatives must reach more than 150 million liters per day in order for it to consume 55 million liters, and export about 100 million liters per day. But the truth is that
Iraq's current production of gasoline and kerosene in total amounts to less than 50 million liters per day.
Accordingly, Iraq requires that it build refineries and increase its production of current oil derivatives by 300%, in order to be able to reach the goal that Al-Sudani talks about, which is that 40% of exports be from oil derivatives.
Iraq produces these current quantities of derivatives by refining less than one million barrels per day. This means that Iraq must refine 3 million barrels of oil per day to reach this quantity of derivatives.
This requires that Iraq's total oil production be at least 7 million barrels per day, so that it has at its disposal approximately 4 million barrels of oil per day for export along with oil derivatives.
What is the relationship between raising the price of improved gasoline?
Iraq's consumption of improved gasoline when its price was 850 dinars per liter before 2020 was less than 3 million liters per day, and
after the price was reduced in 2020 to 650 dinars per liter, the consumption of improved gasoline in Iraq rose to 5 million liters per day.
With the re-raising of the price of improved gasoline to the previous price, indicators indicate that consumption of improved gasoline will return to decline, as many citizens will return to regular gasoline, and
this means that a surplus of improved gasoline will form that the government may plan to export, especially with the entry of new refineries such as a refinery. Karbala, which already produces 7 million liters of improved gasoline.
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Economy |04-18-2024, 21:47 |
Baghdad today - Baghdad
Prime Minister Muhammad Shiaa Al-Sudani announced today, Thursday (April 18, 2024), that his
government has developed a plan to convert 40% of Iraq’s “crude” oil exports into “derivatives,” in a statement that requires stopping and reading.
According to the economic and statistical section in “Baghdad Al-Youm,”
Iraq exports 3.3 million barrels of oil per day, with revenues amounting to more than 250 million dollars per day.
By making 40% of exports oil derivatives, this means that Iraq must export oil derivatives worth $100 million per day.
While the price of a liter of gasoline or kerosene is approximately one dollar per liter globally, this means that
Iraq must export at least 50 million liters of gasoline and the same amount of kerosene, which means more than 100 million liters per day.
In contrast, Iraq's total consumption of gasoline and kerosene amounts to 55 million liters of gasoline and kerosene.
This means that Iraq's total production of petroleum derivatives must reach more than 150 million liters per day in order for it to consume 55 million liters, and export about 100 million liters per day. But the truth is that
Iraq's current production of gasoline and kerosene in total amounts to less than 50 million liters per day.
Accordingly, Iraq requires that it build refineries and increase its production of current oil derivatives by 300%, in order to be able to reach the goal that Al-Sudani talks about, which is that 40% of exports be from oil derivatives.
Iraq produces these current quantities of derivatives by refining less than one million barrels per day. This means that Iraq must refine 3 million barrels of oil per day to reach this quantity of derivatives.
This requires that Iraq's total oil production be at least 7 million barrels per day, so that it has at its disposal approximately 4 million barrels of oil per day for export along with oil derivatives.
What is the relationship between raising the price of improved gasoline?
Iraq's consumption of improved gasoline when its price was 850 dinars per liter before 2020 was less than 3 million liters per day, and
after the price was reduced in 2020 to 650 dinars per liter, the consumption of improved gasoline in Iraq rose to 5 million liters per day.
With the re-raising of the price of improved gasoline to the previous price, indicators indicate that consumption of improved gasoline will return to decline, as many citizens will return to regular gasoline, and
this means that a surplus of improved gasoline will form that the government may plan to export, especially with the entry of new refineries such as a refinery. Karbala, which already produces 7 million liters of improved gasoline.
[You must be registered and logged in to see this link.]
