BAGHDAD: Iraq’s new oil minister Thamer Ghadhban said on Wednesday the current price of crude was “fair,” and that OPEC’s second-largest producer would be responsible in providing ample oil supplies to the market.
Ghadhban also said the oil ministry aimed to increase output capacity and will support foreign energy companies by helping them overcome any bureaucratic hurdles.
“We will do our best to stabilize the market,” Ghadhban told reporters after officially taking over the oil portfolio from Jabar Al-Luaibi.
“The oil price at the moment is at a fair price,” he said in response to a question about an upcoming OPEC meeting in December.
“It’s not too high, it’s not 100 dollars per barrel and it’s not 30 dollars.
“We will look after our country as a first priority but will not put aside the interests of the consumers.”
Oil prices rose on Wednesday, with benchmark Brent crude up 35 cents at $76.26 a barrel by 1115 GMT. The contract fell 1.8 percent on Tuesday, at one point touching its lowest since Aug. 24 at $75.09. US light crude was 25 cents up at $66.43. It hit a two-month low of $65.33 a barrel on Tuesday.
Ghadhban, who was nominated by Prime Minister Adel Abdul Mahdi and confirmed as minister in a parliamentary vote last week, said he would look at ways to reform the oil ministry, including by eliminating nepotism.
The new minister replaced Jabar Al-Luaibi, who had held the oil portfolio since 2016 in the government of former Prime Minister Haider Al-Abadi.
At a ceremony officially transferring the oil portfolio to Ghadhban, the new minister said he would seek to develop oil refineries by increasing their production capacity and reducing gas flaring.
Iraq has continued to flare some of the gas extracted alongside oil at its fields because it lacks the facilities to process it into fuel. Iraq has said it hopes to end gas flaring by 2021.
Iraq is OPEC’s second-largest producer after Saudi Arabia and pumps around 4.6 million bpd. The majority of its crude exports go to Asia.
The bulk of Iraq’s oil is exported via its southern terminals, which account for more than 95 percent of the OPEC producer’s state revenue.
Iraq’s southern oil exports averaged 3.488 million barrels per day (bpd) in October, two oil executives told Reuters on Wednesday.
Exports were down from the September average of 3.560 million bpd owing to bad weather, which slowed shipments on some days, the executives said.
Iraq is seeking to increase crude production capacity to 7 million bpd by 2022 from 5 million bpd now.
Ghadhban said Iraq also planned to increase exploration, especially in its western desert and along border areas.
Iraq oil minister says crude price ‘fair,’ aims to hike output capacity
Iraq oil minister says crude price ‘fair,’ aims to hike output capacity
- ‘We will do our best to stabilize the market’
- ‘We will look after our country as a first priority but will not put aside the interests of the consumers’
Saudi retail spending holds steady near $4bn during early Ramadan, while postal services rise
RIYADH: Saudi Arabia’s point-of-sale spending remained close to $4 billion in the week ending Feb. 21, even as overall transaction volumes declined during the early days of Ramadan, central bank data showed.
According to the latest data from the Saudi Central Bank, also known as SAMA, total POS transactions settled at SR13.9 billion ($3.71 billion), representing a 9.3 percent week-on-week decline, while the number of transactions fell 12.5 percent to 220.57 million.
Spending on freight transport, postal and courier services rose 24.4 percent week on week to SR80.68 million, marking one of the strongest sectoral gains as demand for deliveries increased during the holy month.
In an interview with Arab News, Saudi economist Talat Hafiz attributed the broader slowdown in spending to seasonal consumption patterns linked to Ramadan.
“During the first week of Ramadan, consumer behavior typically shifts, as individuals focus more on purchasing goods related to the holy month while reducing discretionary spending,” he said.
SAMA’s report showed that spending on food and beverages increased by 2.1 percent to SR2.62 billion, accounting for the largest share of total POS transactions.
Meanwhile, spending at restaurants and cafes fell by 28.3 percent to SR1.24 billion.
Hafiz said this purchasing pattern is expected to continue as Eid Al-Fitr approaches.
“Spending behavior is likely to shift again, with increased expenditure on travel-related services, apparel, clothing, and accessories in preparation for Eid. During the Eid holiday itself, we can expect a noticeable rebound in spending on recreation, entertainment, restaurants, and cafes,” he added.
Expenditure on public utilities saw an increase of 2.3 percent to SR63.06 million, while spending on apparel and clothing outlays followed with a 4.8 percent decrease to reach SR1.32 billion.
Spending at pharmacies and medical supply outlets decreased by 7.9 percent to SR206.1 million, while spending on medical services fell by 10.6 percent to SR482.53 million. Expenditure on personal care declined by 23.6 percent to SR93.34 million.
The Kingdom’s key urban centers mirrored the negative changes. Riyadh, which accounted for the largest share of total POS spending, saw a 10.8 percent drop to SR4.75 billion. The number of transactions in the capital reached 69.8 million, down 13.3 percent week on week.
In Jeddah, transaction values decreased 11.1 percent to SR1.88 billion, while Dammam reported a 9.1 percent fall to SR678.29 million.
POS data, tracked weekly by SAMA, provides an indicator of consumer spending trends and the ongoing growth of digital payments in Saudi Arabia.
The data also highlights the expanding reach of POS infrastructure, extending beyond major retail hubs to smaller cities and service sectors, supporting broader digital inclusion initiatives.
