Iraq Yields $100 Mn in Revenues after Expelling Militias from Frontier

Iraqi Prime Minister Mustafa al-Kadhimi at Mandali border crossing between Iraq and Iran (Reuters)
Iraqi Prime Minister Mustafa al-Kadhimi at Mandali border crossing between Iraq and Iran (Reuters)
TT

Iraq Yields $100 Mn in Revenues after Expelling Militias from Frontier

Iraqi Prime Minister Mustafa al-Kadhimi at Mandali border crossing between Iraq and Iran (Reuters)
Iraqi Prime Minister Mustafa al-Kadhimi at Mandali border crossing between Iraq and Iran (Reuters)

Iraq's Border Ports Authority announced record financial revenues from customs duties as a result of the measures taken by the government of Prime Minister Mustafa al-Kadhimi at all border crossings to combat customs corruption, impose order and expel armed factions from the country's frontier.

Head of Iraq's Border Ports Authority Omar al-Waeli said the revenues amounted to $100 million in July despite customs exemptions on several goods and closure of the outlets due to the coronavirus pandemic.

He indicated that the revenues came from seven or eight crossings out of Iraq’s 21, stressing that the authority intends to achieve more revenues to support the state treasury in light of the country’s financial issues.

During his visit to Mandali crossing with Iran last month, Kadhimi vowed to pursue the “ghosts” who were transporting cargo trucks across the border without paying customs fees.

He ordered a team from the Emergency Response Division to take over the crossing, saying they are authorized to use live fire to stop anyone from attacking people working at the border.

Meanwhile, an informed source at the Ports Authority confirmed that the measures taken by the government have made a total difference in terms of increasing the financial revenues achieved and imposing the law.

Speaking to Asharq Al-Awsat, the source said that units of the armed factions were present at the ports under the pretext of supervising religious groups arriving from Iran during the pilgrimage season, but their presence became permanent.

They used the ports for trade operations, customs clearance, and illegally imposing fees and royalties, he added.

The source said that the government recently expelled all the factions and groups working outside the customs area, and dismissed several employees cooperating with those groups.

He also said he expects the revenues to increase in the coming months compared to previous years, noting that over half of the border ports are shut due to the COVID-19, and operating crossings are not at full capacity.



Oil Recovers from Multi-year Low but Brent Remains below $70

FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
TT

Oil Recovers from Multi-year Low but Brent Remains below $70

FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo

Oil prices were steady on Thursday, recovering slightly from a multi-year low, though Brent was still below $70 under pressure from trade tariffs between the US, Canada, Mexico and China and OPEC+ plans to raise output.

Those factors and a larger than expected build in US crude inventories had sent Brent as low as $68.33 on Wednesday, its weakest since December 2021. Brent futures were up 28 cents, or 0.4%, at $69.58 a barrel by 0957 GMT on Thursday while US West Texas Intermediate crude futures gained 32 cents, or 0.5%, to $66.63.

"The US President's intention seems to be for a lower oil price," said John Evans at oil broker PVM, adding that questions remain around whether crude is being oversold, Reuters reported.

Prices had fallen after the US enacted tariffs on Canadian and Mexican goods, including energy imports, at the same time major producers decided to raise output quotas for the first time since 2022.

Oil recovered and stabilized somewhat after the US said it will make automakers exempt from the 25% tariffs.

A source familiar with the discussions said that US President Donald Trump could eliminate the 10% tariff on Canadian energy imports, such as crude oil and gasoline, that comply with existing trade agreements.

"Trump's trade measures are threatening to reduce global energy demand and disrupt trade flows in the global oil market," ANZ commodity strategist Daniel Hynes said in a note.

The OPEC+ producer group, comprising the Organization of the Petroleum Exporting Countries and allies including Russia, decided on Monday to increase output for the first time since 2022.

The resulting retreat in prices was then exacerbated on Wednesday by a rise in US crude inventories, said ANZ's Hynes.

Crude stockpiles in the US, the world's biggest oil consumer, rose more than expected last week, buoyed by seasonal refinery maintenance, while gasoline and distillate inventories fell because of a hike in exports, the Energy Information Administration said on Wednesday.

There are further signs of weakness in American oil demand, with US waterborne crude oil imports dropping to a four-year low in February, driven by a fall in Canadian barrels shipped to the East Coast, ship tracking data shows. Demand was subdued by refinery maintenance including a long turnaround at the largest plant in the region.

Tariffs also remain in effect on US imports of Mexican crude, a smaller supply stream than Canadian crude but an important one for US refineries on the Gulf Coast.

Meanwhile, Chinese officials have flagged that more stimulus is possible if economic growth slows, seeking to support consumption and cushion the impact of an escalating trade war with the United States.