A huge batch of money will cover Iraq: the deficit disappears completely and 12 trillion dinars are surplus .. What does it mean for oil to cross the $ 70 barrier?

A huge batch of money will cover Iraq: the deficit disappears completely and 12 trillion dinars are surplus .. What does it mean for oil to cross the $ 70 barrier?



2021-03-08

Yes Iraq: Baghdad

Iraqi optimism and reassurance continues with greater financial prosperity this year, with the continued rise in oil prices, which today broke the $ 71 strongly, for the first time in more than a year.



As oil prices jumped, today, Monday, to reach the highest level in more than a year, to surpass the price of futures contracts for Brent crude $ 71 per barrel, for the first time since January 8, 2020, while trading data indicated an increase in May futures contracts for North Sea oil mixture brand Brent rose 2.32 percent to $ 71.15 a barrel.







How much height will it add?

According to government statements and SOMO statistics, Iraq issues about 3.5 million barrels per day, while the 2021 budget calculated the price of a barrel at $ 45 and calculated on the basis of the revenues and the deficit, which decreased to only 25 trillion.

With the arrival of oil prices above the $ 71 mark, the price difference between what is specified in the budget and the prices reached today amounts to more than $ 25.

According to calculations made by the "Yes Iraq" platform, this price surplus will add about $ 25 billion this year, and with the difference in the new exchange rate, it will enter the treasury about 37 trillion Iraqi dinars, at a time when the deficit is only 25 trillion, which means that it will flood as well. About 12 trillion Iraqi dinars during the year 2021, if oil prices stabilized above the $ 70 barrier.





Will the prices continue to be high?

Mazhar Muhammad Salih, the economic advisor to the prime minister, points out that the continuation of oil prices at the $ 70 per barrel barrier will dispense with borrowing.

Saleh said, "The global economic crisis is towards easing after the rise and recovery of global oil prices, reaching the $ 70 barrier."

He added, "The deficit has shrunk, and it is possible to dispense with borrowing if the price of a barrel of oil continues towards the current price," noting that "the global oil surplus has ended and OPEC is looking to increase production for all exporting countries and urges them to do so."

Saleh explained that "the disappearance of 10% of the global oil surplus dispels fears of a return to low oil prices, which means that the budget reaches the equilibrium stage."




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