Jordan's cabinet has approved a much-delayed pipeline to supply oil and gas from Basra in southern Iraq to the kingdom's Aqaba port, as Baghdad seeks alternative routes to bring its crude to market.
The project aims to construct a pipeline to export Iraqi oil through Jordan and to provide oil to meet some of the kingdom's needs, state news agency Petra reported, citing a Cabinet statement.
The statement offered no further details on the project or the timeline.
Iraq, the Arab region's second-largest crude producer after Saudi Arabia, had considered building a pipeline to bring oil from its southern Rumaila field for export from Jordan's Red Sea Port of Aqaba, located 330km south of its capital Amman. Iraq's instability and battles with ISIL had put the project on the back-burner.
In December 2016, Iraq's State Company for Oil Projects, which oversees the proposed Basra-Aqaba project, invited energy companies and investors to bid to build and finance the first phase of the pipeline from Basra to an energy station at Najaf central-south Iraq.
Ruba Husari, managing director at consultancy Iraq Insight, said the project had begun before Iraq's conflict with the oil-rich Kurdish Regional Government intensified following last year's independence referendum as the federal government had long-sought Red Sea access in addition to the Gulf (via Basra) and the Mediterranean (via Turkey's Ceyhan).
"Kirkuk-Ceyhan has been problematic since 2003 with various groups bombing it at different periods, hence the need for another option," said Ms Husari.
The pipeline linking crude from Kirkuk, one of the Middle East's oldest fields, to the Turkish port of Ceyhan is Iraq's biggest and main export link with capacity to transport 150,000 barrels per day (bpd). Parts of the supply line had been severely damaged during fighting between various factions and the Iraqi government. Following the reclamation of territory from ISIL last year , Baghdad has pushed for reconstruction of energy infrastructure across the country, including repair of damaged sections of the Kirkuk pipeline.
The ministry announced last October that it had boosted export capacity from Basra by 900,000 bpd to 4.6 million bpd after building a new floating terminal.
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The Basra-Aqaba pipeline would take "at least a couple of years" to develop, said Ms Husari.
"They have to complete the agreements with the developers (private companies) and agree the financing of the pipeline for both sections in Jordan and Iraq. There is still more work to do before they get to the construction phase," she added.
Alan Mohtadi, an Iraq-focused energy analyst based in Sweden, said that it was unlikely that the Basra-Aqaba pipeline could move soon given concerns over security that remain in the country, even after the fall of ISIL
"The security is a major concern, I can't see a pipeline to Jordan anytime soon," he said.
The route of the pipeline, which had earlier included the restive Anbar province, has been modified to skirt further south of the governorate and is now "more secure," saidMs Husari.
Jordan, which shares a border with Iraq, Syria, Israel and Saudi Arabia meets 88 per cent of its requirements through the Arab Gas pipeline, which supplies gas from Arish in Egypt. However, repeated attacks on the pipeline in the Sinai peninsula has forced the Levantine kingdom to look for alternative sources, including renewables to meet its power requirements. The energy-deficit country depends on oil and crude products to meet 98 per cent of its power requirements.
The proposed Basra-Aqaba pipeline "would spur supply" to Jordan's sole refinery at Zarqa, added Ms Husari, with Amman set to benefit from cashing on transit fees to export Iraqi crude.
State refiner Jordan Petroleum Refinery Company is currently undertaking a $1.6 billion expansion of the facility to boost capacity to 120,000 bpd.
Jordan has also looked at developing nuclear power plants with Russia to meet its energy requirements. The kingdom last year floated tenders to develop its first nuclear power plant, which is estimated to cost $10bn and will be financed equally by Jordan and Russia.
What should do investors do now?
What does the S&P 500's new all-time high mean for the average investor?
Should I be euphoric?
No. It's fine to be pleased about hearty returns on your investments. But it's not a good idea to tie your emotions closely to the ups and downs of the stock market. You'll get tired fast. This market moment comes on the heels of last year's nosedive. And it's not the first or last time the stock market will make a dramatic move.
So what happened?
It's more about what happened last year. Many of the concerns that triggered that plunge towards the end of last have largely been quelled. The US and China are slowly moving toward a trade agreement. The Federal Reserve has indicated it likely will not raise rates at all in 2019 after seven recent increases. And those changes, along with some strong earnings reports and broader healthy economic indicators, have fueled some optimism in stock markets.
"The panic in the fourth quarter was based mostly on fears," says Brent Schutte, chief investment strategist for Northwestern Mutual Wealth Management Company. "The fundamentals have mostly held up, while the fears have gone away and the fears were based mostly on emotion."
Should I buy? Should I sell?
Maybe. It depends on what your long-term investment plan is. The best advice is usually the same no matter the day — determine your financial goals, make a plan to reach them and stick to it.
"I would encourage (investors) not to overreact to highs, just as I would encourage them not to overreact to the lows of December," Mr Schutte says.
All the same, there are some situations in which you should consider taking action. If you think you can't live through another low like last year, the time to get out is now. If the balance of assets in your portfolio is out of whack thanks to the rise of the stock market, make adjustments. And if you need your money in the next five to 10 years, it shouldn't be in stocks anyhow. But for most people, it's also a good time to just leave things be.
Resist the urge to abandon the diversification of your portfolio, Mr Schutte cautions. It may be tempting to shed other investments that aren't performing as well, such as some international stocks, but diversification is designed to help steady your performance over time.
Will the rally last?
No one knows for sure. But David Bailin, chief investment officer at Citi Private Bank, expects the US market could move up 5 per cent to 7 per cent more over the next nine to 12 months, provided the Fed doesn't raise rates and earnings growth exceeds current expectations. We are in a late cycle market, a period when US equities have historically done very well, but volatility also rises, he says.
"This phase can last six months to several years, but it's important clients remain invested and not try to prematurely position for a contraction of the market," Mr Bailin says. "Doing so would risk missing out on important portfolio returns."
Abu Dhabi World Pro 2019 remaining schedule:
Wednesday April 24: Abu Dhabi World Professional Jiu-Jitsu Championship, 11am-6pm
Thursday April 25: Abu Dhabi World Professional Jiu-Jitsu Championship, 11am-5pm
Friday April 26: Finals, 3-6pm
Saturday April 27: Awards ceremony, 4pm and 8pm
The Brutalist
Director: Brady Corbet
Stars: Adrien Brody, Felicity Jones, Guy Pearce, Joe Alwyn
Rating: 3.5/5
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
Tips to avoid getting scammed
1) Beware of cheques presented late on Thursday
2) Visit an RTA centre to change registration only after receiving payment
3) Be aware of people asking to test drive the car alone
4) Try not to close the sale at night
5) Don't be rushed into a sale
6) Call 901 if you see any suspicious behaviour
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US households add $601bn of debt in 2019
American households borrowed another $601 billion (Dh2.2bn) in 2019, the largest yearly gain since 2007, just before the global financial crisis, according to February data from the New York Federal Reserve Bank.
Fuelled by rising mortgage debt as homebuyers continued to take advantage of low interest rates, the increase last year brought total household debt to a record high, surpassing the previous peak reached in 2008 just before the market crash, according to the report.
Following the 22nd straight quarter of growth, American household debt swelled to $14.15 trillion by the end of 2019, the New York Fed said in its quarterly report.
In the final three months of the year, new home loans jumped to their highest volume since the fourth quarter of 2005, while credit cards and auto loans also added to the increase.
The bad debt load is taking its toll on some households, and the New York Fed warned that more and more credit card borrowers — particularly young people — were falling behind on their payments.
"Younger borrowers, who are disproportionately likely to have credit cards and student loans as their primary form of debt, struggle more than others with on-time repayment," New York Fed researchers said.
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2018 ICC World Twenty20 Asian Western Regional Qualifier
Saturday results
Qatar beat Kuwait by 26 runs
Bahrain beat Maldives by six wickets
UAE beat Saudi Arabia by seven wickets
Monday fixtures
Maldives v Qatar
Saudi Arabia v Kuwait
Bahrain v UAE
* The top three teams progress to the Asia Qualifier
RESULT
Leeds United 1 Manchester City 1
Leeds: Rodrigo (59')
Man City: Sterling (17')
Man of the Match: Rodrigo Moreno (Leeds)
