Iraq oil helps to attract international buyers for bonds
Iraq oil helps to attract international buyers for bonds
25/03/2015 (00:01 pm)
Range / Reuters
Despite the war being waged against al-Iraq “Daash” The decline in oil prices that has plagued public Bmalith still can rely on oil reserves to attract buyers to the first publications of international bonds in nine years.
Finance Minister Hoshyar Zebari said last week, “Reuters”, “The central government is discussing with Citibank and Deutsche Bank version potential bond dollar worth five billion dollars for five years to help them bridge the budget deficit.”
It is believed a lot of fund managers that Iraq will fall short of selling such a huge amount of bonds at once especially as he did not get a credit rating from one of the major agencies, and obtain a credit rating could take months.
It is true that the bond support specific revenue oil will boost investor demand but the government has not said it would do so tied her hands may refuse this way, so you may be offered a smaller version in the coming weeks, perhaps between $ billion and two billion.
But there is no doubt that Iraq still can enter the international debt market whenever he pleases. Oil Vahtiatath very huge and plans for the production of this oil is very ambitious as to make it attractive market for funds wanting exposure to political risk compared to reap high returns.
The increased Iraq’s second-largest producer in the Organization of the Petroleum Exporting Countries (OPEC) production to 3.4 million barrels per day in January from 3.05 million barrels a year ago. Baghdad has said it aims to raise the total capacity to between 8.5 million and 9 million barrels per day by 2020.
Maybe this goal overly optimistic in light of security concerns and poor infrastructure and lack of liquidity, but the huge oil fields in Iraq, located in the southern region including them in safe from the organization “Daash” relatively attacks.
In the same context, crude oil prices reversed direction, on Tuesday, and re-ascent towards $ 57 a barrel since delivered a weak dollar overshadowed the slowing growth in China and the approach of the Saudi oil production from its highest level ever.
The inn Dollar 0.25 percent against the euro to worsen the losses suffered in the previous session, which enhances commodity prices denominated in dollars which moves in the opposite direction of the US currency.
The price of Brent futures 64 cents to $ 56.56, while stepped up US crude 60 cents to $ 48.05 a barrel , the difference between the already allocated widened to $ 8.51 a barrel in favor of Brent.
and reduced crude gains data showed a decline in factory activity in China’s second-largest economy and the largest net oil importer in the world in March.
recorded a preliminary reading of the index HSBC / Market purchasing managers 49.2 in March, down from the 50 level that separates growth activities and shrinking on a monthly basis, and analysts predicted Economists in a Reuters poll reading at 50.6.
The decline in the PMI in China after a report released last night reported that Saudi Arabia is the largest producer in OPEC pumps about ten million barrels a day, a figure approaching the highest on record and more than 350 thousand barrels per day from the figure provided by the Kingdom of OPEC production in February.
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