Rising oil prices boost state revenues by about $ 25 billion

aljournal April 22, 2018



April 22, 2018

Baghdad - Fadia Hikmat

The price of a barrel of crude oil nearly $ 70 or more, after a sharp decline in recent years and this rise in prices because of the consensus of oil-producing countries to cut production to raise the world price, as well as the depletion of all oil stocks in traders speculators in international prices.

The Iraqi government estimated the price of one barrel of oil in this year's budget at about $ 46, and the rise in oil prices will contribute to a surplus of about $ 25 billion.

Oil expert Hamzah al-Jawahri said global oil prices if it continued to stabilize above $ 60 would result in a surplus in national oil revenues as the government priced a barrel at $ 46.

Al-Jawahiri said in a statement to «Journal News», that "the federal budget will receive a surplus estimated at $ 25 billion this year, in the event of continuing oil prices at $ 60 or more, indicating that the surplus will end the budget deficit and strengthen the bank's cash reserve Central bank by about 10 billion dollars. "

The oil expert said that "the deficit in the federal budget of about 15 billion dollars, and if a surplus of about 25 billion will end the deficit and strengthen the reserves of the Central Bank about 10 billion dollars as payment of dues of the bank after the government borrowed during the last period huge amounts of it, Improving the situation of displaced persons and participating in the reconstruction of liberated cities. "

Al-Jawahiri pointed out that "the management of surplus amounts is related to the management of public funds and not to control one side of the money and thus cut the corruption and waste of public money, but Iraq can not give up the profitability of its economy because we need to activate and develop the rest of the sector and therefore continue to develop, The new and covered oil, which begins production after 15 years at least and this follows the natural variables of the decline of global production and oil stocks and others.

In turn, the oil expert Amr Hisham that the surplus obtained by the Iraqi government due to high oil prices will address the fiscal deficit in the budget of 2018.

Hisham said in a statement to «Journal News» that "the financial budget for 2018 includes a $ 13 trillion dinar, and the price per barrel was estimated in the budget of $ 46, which means achieving a surplus in oil revenues estimated at more than $ 20 billion helps to cover the deficit and pay a lot Of the international debt on Iraq, indicating that the obsession with corruption and waste is still a disgrace on that money and therefore there should be an international body oversees the general administration of funds.

The expert pointed out that oil prices will not remain the same, it is possible to increase more or decrease, and in this case will change the mathematical equations and accounting impact on the budget, which necessitates the government's direction to activate the economic sectors and exit from rent and dependence on the oil revenues changing, until

The total debt of Iraq amounted to about 133 billion dollars, which is fragmented internally and externally, "noting that 40 billion dollars are foreign debts due to the Gulf War II, Saudi Arabia, UAE and Kuwait, and those countries promised Iraq to give up debt, which will help to reduce to about 70 billion dollars , So increasing revenues through the surplus or the difference in the price of a barrel of oil will contribute to filling the deficit and find real solutions to the problems of other economic sectors. "

The economic expert stressed that "the payment of debt is not easy, because it has benefits and taxes," noting that "the International Monetary Fund seeks to reduce the proportion of the budget deficit to not exceed 15 billion dollars."

It is noteworthy that the Ministry of Oil announced the export of more than 107 million barrels of crude oil during the month of March, indicating that the statistics did not record any exports from the fields of Kirkuk.

The spokesman for the Ministry of Oil Assem Jihad, "The amount of exports of crude oil for the month of March, according to preliminary statistics issued by the company marketing oil (Sumo) amounted to 107 million and 50 thousand barrels," indicating that "the revenues of these exports amounted to more than 6 billion and 418 Million and 58 thousand dollars, while not recorded statistics exports from the fields of Kirkuk. "

Jihad said that "the daily rate of exports amounted to 3 million and 453 thousand barrels," noting that "the average price per barrel amounted to 59,954 dollars."

Iraq exports crude oil currently from the southern ports in Basra after the cessation of northern exports as a result of the region's non-compliance with the oil agreement with the federal government.

Saudi Energy Minister Khalid Al-Falih's comments led the futures prices to rise.

Al-Faleh said OPEC member states should continue to coordinate with Russia and other non-OPEC oil producers with regard to supply restrictions in 2019 to reduce global oil stocks.

The organization and a group of non-member countries led by Russia signed an agreement in January 2017 to cut output by 1.8 million bpd to eliminate excess supply.

http://www.aljournal.com/ارتفاع-اسعار-النفط-يعزز-ايرادات-الدول/