Daily Digest 6/3 - Weak Economy Points To Obama's Constraints, Oil Output Soars As Iraq Retools, Merkel Rejects Debt Sharing
- In Economic Deluge, a World That’s Unable to Bail Together
- Weak Economy Points to Obama’s Constraints
- Merkel Rejects Debt Sharing As Obama Urges Europe Action
- Oil Output Soars as Iraq Retools
- Inter-Regional Trade Movements of Petroleum to and from the remaining Asia-Pacific Region, Part 11
Moreover, there seems to be little willingness — or perhaps lit-tle ability — for the major countries to act together again. Squabbles have grown, some countries are in fiscal distress, and others face daunting domestic problems. The European situation is the most pressing. Banks are under pressure in many countries, for a combination of reasons. They did not raise as much capital as they might have when markets were more buoyant last year. In some cases, they appear to have been slow to recognize their real estate loan losses.
Developments overseas have not helped either. American officials have complained as Beijing began letting its currency devalue again, making its exports cheaper and those from the United States to China more costly. And administration officials, and Mr. Obama himself, have lobbied leaders in Europe for more forceful action to promote growth or at least contain the threat of financial contagion there.
“Europe is having a significant crisis in part because they haven’t taken as many of the decisive steps as were needed to deal with the challenge,” he said at a separate event in Minneapolis.
Oil Output Soars as Iraq Retools (jdargis)
“Iraq helps enormously,” said David L. Goldwyn, the former State Department coordinator for international energy affairs in the Obama administration. Even if Iraq increased its oil exports by only half of what it is projecting by next year, he said, “You would be replacing nearly half of the future Iranian supply potentially displaced by tighter sanctions.”
In view of the large discrepancy between the remaining Asia-Pacific region’s growing consumption rate and flat to declining production rate, it is no surprise that inter-regional import rates over the last decade have increased from 3 billion barrels per year in 2000 to 4.1 billion barrels per year in 2010, while inter-regional exports are flat to declining at 0.6 to 0.7 billion barrels per year. These imports amount to 82 percent of the remaining Asia-Pacific region’s total consumption. In 2010, the remaining Asia-Pacific region was importing about 24 percent of the total global inter-regional import pool, which is just slight below the 27 percent imported by the European region. Similar to Japan, the remaining Asia-Pacific region is highly dependent upon one region for these imports—over 70 percent of its inter-regional imports come from the Middle East with a much smaller, and declining, amount coming from Africa.
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