Jordan to Export Electricity to Iraq

Employees walk grounds of Dhi Qar Combined Cycle Power Plant near Iraqi city of Nasiriyah (File photo: AFP)
Employees walk grounds of Dhi Qar Combined Cycle Power Plant near Iraqi city of Nasiriyah (File photo: AFP)
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Jordan to Export Electricity to Iraq

Employees walk grounds of Dhi Qar Combined Cycle Power Plant near Iraqi city of Nasiriyah (File photo: AFP)
Employees walk grounds of Dhi Qar Combined Cycle Power Plant near Iraqi city of Nasiriyah (File photo: AFP)

Jordan signed an agreement to sell electricity to Iraq and connect the two countries' power grids, according to an official Jordanian source.

The agreement was signed via videoconferencing and attended by Jordanian Minister of Energy and Mineral Resources Hala Zawati and her Iraqi counterpart Majed Emarah.

The deal says that Jordan will provide Iraq with 1,000 gigawatt-hours per year in the first phase of the project.

Zawati said that supplying Iraq with electricity will begin after the completion of the construction of al-Risha plant in Jordan, and the establishment of the 300-km power line connecting it with the al-Qaim conversion plant in Iraq.

It will be completed within 26 months of the signing date of the contract, the Minister added.

She highlighted the importance of the Jordanian-Iraqi power grid connection, pointing out that the project enhances the stability and reliability of power networks in both countries.

It serves the intention of establishing a joint power market in the Arab world, which would promote Arab economic integration, announced Zawati.

Baghdad currently imports gas and electricity from Tehran following a US waiver allowing Iraq to import energy sources from Iran without risking sanctions.

Despite rich oil sources, Baghdad relies heavily on Iran in the field of energy and imports a third of its gas and electricity consumption. Iraq is unable to achieve energy self-sufficiency to secure the needs of its 40 million people because of a decaying infrastructure.

The US extended the waiver granted to Iraq for two additional months, an Iraqi official told AFP.

When Iraqi Prime Minister Mustafa al-Kadhimi formed the government in May, Washington granted Baghdad an exemption for a period of four months.

Meanwhile, Iraq’s General Company for Passenger Transport and Delegations at the Ministry of Transport announced preliminary talks to open a new route to Egypt, via Jordan.

Local media quoted the Company’s general director, Karim Hussein, who said there is a priority to open a new route to Egypt.

Hussein said the company's financial performance was profitable between 2018 and until the first two months of 2020, when it faced many losses due to travel bans and lockdowns imposed to prevent the spread of the coronavirus pandemic.



Oil Steadies as Market Awaits Fresh US Tariffs

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
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Oil Steadies as Market Awaits Fresh US Tariffs

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 little changed on Wednesday as traders remained cautious ahead of US tariffs due to be announced at 2000 GMT, fearing they could exacerbate a global trade war and dampen demand for crude.

Brent futures were down 7 cents, or 0.09%, at $74.42 a barrel by 0858 GMT. US West Texas Intermediate crude futures fell 5 cents, or 0.07%, to $71.15.

The White House confirmed on Tuesday that President Donald Trump will impose new tariffs on Wednesday, though it provided no detail on the size and scope of the trade barriers, according to Reuters.

Trump's tariff policies could stoke inflation, slow economic growth and escalate trade disputes.

"Crude prices have paused last month's rally, with Brent finding some resistance above $75, with the focus for now turning from a sanctions-led reduction in supply to Trump's tariff announcement and its potential negative impact on growth and demand," said Ole Hansen, head of commodity strategy at Saxo Bank.

Traders will be watching for levies on crude imports, potentially driving up prices of refined products, he added.

For weeks Trump has touted April 2 as "Liberation Day", bringing new duties that could rattle the global trade system.

The White House announcement is scheduled for 4 p.m. ET (2000 GMT).

"The balance of risk lies to the downside, given that weaker than expected tariff measures are unlikely to drive a significant rally in Brent, while stronger than expected measures could trigger a substantial selloff," BMI analysts said in a note.

Trump has also threatened to impose secondary tariffs on Russian oil and on Monday he ramped up sanctions on Iran as part of his administration's "maximum pressure" campaign to cut its exports.

"Markets likely to be volatile ahead of the final announcements on tariffs and the scale of them. The threat of secondary tariffs on Russian crude continues to provide some support for prices, with more downside risk at present around tariff uncertainty," said Panmure Liberum analyst Ashley Kelty.

US oil and fuel inventories painted a mixed picture of supply and demand in the world's biggest producer and consumer.

US crude oil inventories rose by 6 million barrels in the week ended March 28, according to sources citing the American Petroleum Institute. Gasoline inventories, however, fell by 1.6 million barrels and distillate stocks were down by 11,000 barrels, the sources said.

Official US crude oil inventory data from the Energy Information Administration is due later on Wednesday.