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Kurds Reel as War Batters Weak Economy

In this ancient Kurdish city’s sprawling bazaar, Sarbaz Gawhar is in a quandary over the impact of his government’s recent territorial advances. While the rapid incursions of Sunni jihadists have helped Kurdish forces cement control of oil-rich Kirkuk province, the conflict in Iraq has added to pressures on the Kurdistan Regional Government’s oil-rich but poorly developed economy. Mr. Gawhar is facing a precipitous collapse in his textile business. Amid severed supply lines, chronic fuel shortages, rising prices and plunging consumer demand, sales are down 90%, with few signs of a recovery. "Yes we’ve taken control of our lands, but the war is hurting our economy," Mr. Gawhar said, surrounded by candy-colored fabric rolls he sells wholesale to stores in dozens of Iraqi cities. "People are starting to panic and hoard, and if things continue this way, it could be a disaster." Since Saddam Hussein’s demise […]

Posted On : Published By : Tom Whipple
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Iraq crisis: Shia militia show of force raises tensions

Share this page Delicious Digg Facebook reddit StumbleUpon Twitter Email Print Shia cleric Moqtada al-Sadr has rallied followers to join a military parade across Iraq, as Jonathan Beale reports from Baghdad Continue reading the main story Thousands of Shia militia loyal to the powerful cleric Moqtada al-Sadr have paraded through the streets of Baghdad, raising sectarian tensions amid continued fighting in areas of Iraq. The cleric, whose Mehdi Army fought the US in Iraq for years, had called for a military parade across the country. Correspondents say the show of force will be seen as a very disturbing development by the Baghdad government. Sunni extremists have seized control of large swathes of territory across Iraq. On Saturday, the militants – led by jihadist group Isis – were reported to have seized a strategically important border crossing to Syria, near the town of Qaim, killing 30 troops after a day-long […]

Posted On : Published By : Tom Whipple
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Price impacts of Iraq turmoil may weigh on US crude export policy shift

Ongoing turmoil in Iraq is not expected to expedite a shift in US crude oil export policy, but a linked increase in gasoline prices could make policymakers more hesitant to liberalize export restrictions. "Even if it may not be true, there may always be a concern for some people that a change in oil export policy will be accused of having led to a run up in pump prices," said Jason Bordoff, a former White House energy adviser for the Obama administration. "It’s hard to overstate the political sensitivity around gasoline prices. Potential impacts on gasoline prices are always something that politicians are aware of," said Bordoff. Article continues below… Oilgram News Oilgram News brings you fast-breaking global petroleum and gas news on and including: Industry players, upstream and downstream markets, refineries, midstream transportation and financial reports Supply and demand trends, government actions, exploration and technology Daily futures summary […]

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In Chaos, Iraq’s Kurds See a Chance to Gain Ground

The chair Col. Imad Muhammad sat in belonged to a commander in the Iraqi Army. So did the tiny cup from which he was drinking his tea, the ashtray where he snuffed out his cigarettes and the Ping-Pong table and treadmill outside his office. “They left everything behind,” said Colonel Muhammad, of the Iraqi soldiers who fled last week after Islamist extremists besieged northern Iraq. Colonel Muhammad is an officer in the pesh merga, the Kurdish security forces that have occupied an air base, once home to the American military and then the Iraqi government, here in Kirkuk. In doing so, they claimed for the Kurds a divided city that many of them regard as their spiritual homeland. It is rich in oil, too, which could accelerate the Kurds’ longstanding drive for economic independence and eventual statehood. But as he spoke in an interview this week, […]

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Will the Iraqi Siege Cause Oil and Gasoline Prices to Spike?

Should we be worried about a major spike in oil prices—and summer gas prices—because of the sectarian conflict in Iraq ? It’s an important question in the markets right now, because every $10 increase in the price of oil shaves 0.5 percent of global growth. I’m cautiously optimistic for the moment that the answer will be: no. Oil, as I’ve written before , is amongst the most fear driven commodities. Supply and demand are supposed to rule markets, but every time there’s a major conflict in the oil rich Middle East—from the Iranian revolution to the Gulf War—prices go up about 30 percent higher than they should be, regardless of the facts on the ground. Even when supply isn’t interrupted, even when there’s plenty of oil to fuel world markets, the price of crude is typically driven by fear rather than reality. So what are the […]

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Fierce battles for key Iraqi sites

Islamist-led militants and pro-government forces are engaged in fierce battles for the Baiji oil refinery and Tal Afar airport in northern Iraq. Baiji, Iraq’s biggest refinery, is surrounded by the rebels, who say they have seized most of Tal Afar airport. The fighting comes a day after the US said it would send some 300 military advisers to help the fight against the insurgents. President Barack Obama stressed that US troops would not fight in Iraq. US Secretary of State Kerry is expected to travel to Iraq soon to press for a more representative cabinet, hoping this could ease tensions between the country’s rival Muslim sects. Iraqi Prime Minister Nouri Maliki has been accused of pursuing anti-Sunni policies, pushing […]

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Challengers Emerge to Replace Divisive Maliki

BAGHDAD — Iraqi officials said Thursday that political leaders had started intensive jockeying to replace Prime Minister Nuri Kamal al-Maliki and create a government that would span the country’s deepening sectarian and ethnic divisions, spurred by what they called encouraging meetings with American officials signaling support for a leadership change. President Obama implicitly added his voice on Thursday to the call for change, saying any Iraqi leader must be a unifier. He declined to endorse Mr. Maliki. The jockeying began as a series of meetings with American officials were held here in which, according to at least two participants, they saw the first indications that the Americans would like to see a replacement for Mr. Maliki, whose marginalization of non-Shiites since United States forces left Iraq in 2011 has made him a polarizing figure. At least three people, who like Mr. Maliki are all members of the Shiite majority, […]

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China to Move Citizens in Iraq

BEIJING–China said it would move an undisclosed number of its more than 10,000 citizens in Iraq away from danger zones amid an intensifying insurgency there and urged Baghdad to protect its people and interests. At a daily press briefing on Thursday, China Foreign Ministry spokeswoman Hua Chunying said those in dangerous areas could be moved to either safer places in Iraq or neighboring countries. Ms. Hua said most Chinese nationals in the country are in relatively safe areas already. "China is willing to continue to provide assistance to Iraq at the request of the Iraqi side in antiterrorism and reconstruction works," she said. "We also hope that Iraqi side could take concrete measures to ensure security of Chinese institutions and personnel." China’s presence in Iraq has grown in recent years as the Middle Eastern country has become a growing source of its imported oil. Imports from Iraq rose roughly […]

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Army: Militants regrouping in Iraq refinery attack

The army officer in charge of protecting a key Iraqi refinery besieged by Sunni militants says he fears insurgents are regrouping to resume their assault on the key facility. The fight over the Beiji refinery, some 250 kilometers (155 miles) north of Baghdad, began Tuesday. Col. Ali al-Qureishi said the latest attempt by fighters came late Thursday. Al-Qureishi told The Associated Press on Friday that he believed the militants were regrouping to launch a new attack. There was no immediate way to independently verify al-Qureishi’s claims. Its loss would be a devastating symbol of the Baghdad government’s powerlessness in the face of the offensive by Sunni militants of the Islamic State of Iraq and the Levant. The militants captured much of northern Iraq in a lightning offensive last week. THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below. […]

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U.S.: No major disruption to Iraqi oil exports

Though the situation in Iraq requires constant monitoring, there’s been no major disruption to its crude oil exports, a U.S. State Department spokeswoman said. Militants with the Islamic State of Iraq and Syria laid siege to a key oil refinery in Baiji, about 130 miles north of the Iraqi capital. U.S. State Department spokeswoman Jen Psaki said during a regular press briefing production was shut down at the refinery for several days before the attack. The closure of the refinery, which feeds the domestic market, means Iraq may have to import some energy supplies for neighboring countries, though exports aren’t limited. "There’s no impact on Iraq’s crude oil exports, and we haven’t seen any major disruptions in oil supplies in Iraq," she said . "But we’re certainly constantly monitoring the global oil supply and demand situation." The growing Sunni insurgency has sparked fears about the stability […]

Posted On : Published By : Tom Whipple