Iraq's Local Businesses Thrive amid Lockdown

Iraqis walk through a fresh produce market in the southern Iraqi city of Basra as some lockdown restrictions imposed during the novel coronavirus pandemic have been eased. AFP
Iraqis walk through a fresh produce market in the southern Iraqi city of Basra as some lockdown restrictions imposed during the novel coronavirus pandemic have been eased. AFP
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Iraq's Local Businesses Thrive amid Lockdown

Iraqis walk through a fresh produce market in the southern Iraqi city of Basra as some lockdown restrictions imposed during the novel coronavirus pandemic have been eased. AFP
Iraqis walk through a fresh produce market in the southern Iraqi city of Basra as some lockdown restrictions imposed during the novel coronavirus pandemic have been eased. AFP

A national lockdown in Iraq to contain the spread of the novel coronavirus pandemic has been favored by local businesses who no longer have to compete with Turkish, Iranian or Chinese imports.

Amin Qassem, who has operated in an ice cream factory in the oil-rich province of Basra since 2006 expressed his satisfaction over the new circumstances.

"The coronavirus crisis has allowed us to prove ourselves on the Iraqi market," he said.

"When there was cheap ice cream coming in from Iran, I had to lower my prices to sell so that my ice cream wouldn't be stuck melting in storage," he added .

"Now, I can sell at higher prices. We were able to win back the same markets where imports once crushed us."

Meanwhile, Hadi Abbud, who owns a plastics factory also in Basra, has already reported an exponential surge in orders for plastic tubing, usually brought in from China, AFP reported.

His factory has been working 24/7 to mould, cut and polish thick plastic cylinders proudly stamped "Made in Iraq."

"These days, I'm getting new orders for plastic tubes faster than I can even produce them," said Abbud, his white hair meticulously combed back.

Sales are so good he is planning to recruit another 50 workers for his 100-man factory.

"The situation has really changed," Abbud said, his smile barely concealed by the face mask he wore as part of mandated social distancing in his factory.

According to AFP, even at sea, the difference is notable.

"Starting around a month ago, there have been many more fish," said Mohammed Fadel, who sells his daily catch at a stand in Basra's downtown market.

In Basra's markets, tables are now heaving with rows of silvery fish and buckets of prawns, carefully examined by shoppers in gloves and masks.

The catches are so plentiful that a kilogramme of "zubeidy," a local sea bream, has dropped from $16 to $9.

"The number of fish -- and the prices -- are just extraordinary," said Fadel.



Oil Prices Steady as Markets Weigh Demand against US Inventories

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
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Oil Prices Steady as Markets Weigh Demand against US Inventories

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)

Oil prices were little changed on Thursday as investors weighed firm winter fuel demand expectations against large US fuel inventories and macroeconomic concerns.

Brent crude futures were down 3 cents at $76.13 a barrel by 1003 GMT. US West Texas Intermediate crude futures dipped 10 cents to $73.22.

Both benchmarks fell more than 1% on Wednesday as a stronger dollar and a bigger than expected rise in US fuel stockpiles pressured prices.

"The oil market is still grappling with opposite forces - seasonal demand to support the bulls and macro data that supports a stronger US dollar in the medium term ... that can put a ceiling to prevent the bulls from advancing further," said OANDA senior market analyst Kelvin Wong.

JPMorgan analysts expect oil demand for January to expand by 1.4 million barrels per day (bpd) year on year to 101.4 million bpd, primarily driven by increased use of heating fuels in the Northern Hemisphere.

"Global oil demand is expected to remain strong throughout January, fuelled by colder than normal winter conditions that are boosting heating fuel consumption, as well as an earlier onset of travel activities in China for the Lunar New Year holidays," the analysts said.

The market structure in Brent futures is also indicating that traders are becoming more concerned about supply tightening at the same time demand is increasing.

The premium of the front-month Brent contract over the six-month contract reached its widest since August on Wednesday. A widening of this backwardation, when futures for prompt delivery are higher than for later delivery, typically indicates that supply is declining or demand is increasing.

Nevertheless, official Energy Information Administration (EIA) data showed rising gasoline and distillates stockpiles in the United States last week.

The dollar strengthened further on Thursday, underpinned by rising Treasury yields ahead of US President-elect Donald Trump's entrance into the White House on Jan. 20.

Looking ahead, WTI crude oil is expected to oscillate within a range of $67.55 to $77.95 into February as the market awaits more clarity on Trump's administration policies and fresh fiscal stimulus measures out of China, OANDA's Wong said.