Abadi economic adviser likely not to fall in oil prices below $ 55-60 rate and the possibility of a future rise

Author: BS, ZJ
Editor: BK, BS
12/19/2014 12:02



Long-Presse / Baghdad
Stressed the economic advisor to the Prime Minister, Haider al-Abadi, on Friday, that Iraq is losing more than a billion dollars a year with each drop of $ single in the price of a barrel of oil, which issued, while the predicted price is not less than 55. The rate of $ 60 a barrel, most likely possibility rise and decline of the future role of the oil-producing companies from non-traditional sources.

The US crude and Brent crude prices have jumped simple unrealized gains after data showed a drop in US crude inventories last week, as US crude futures rose for delivery in the earliest maturity of 54 cents at the settlement, or one percent, to $ 56.47.

Economic Adviser to the Prime Minister, the appearance of Mohammed Saleh, said in an interview and said to (the long-Presse), said that "any rise in global oil prices to serve Iraq Ksenh reduces the proportion of the deficit in the budget," noting that "the decline in those prices hurt Iraq and exacerbate the budget deficit , especially since the economy depends 95 percent on oil imports. "

Saleh added that "the decline in the price of a barrel of oil dollars and one leads to the loss of Iraq more than a billion dollars over the course of one year, while the rise equally, adds to the treasury billion and $ 200 million or more per year," noting that "the rise today in the price of a barrel Oil is important and gives a positive signal for improvement in global markets. "

Saleh continued, that "Iraq and Saudi Arabia and the Gulf states and Iran, the oil extracted from the traditional natural resources, and that the cost of producing a barrel of it up, on average, to $ 67," returned that "the sale of oil, $ sixty involves a loss-producing countries."

He went on an economic advisor to the prime minister, said that "companies that produce oil from unconventional sources, such as oil sand and stone oil and others, suffered heavy losses when falling world oil price, because the revenues no longer cover the cost of production, which may give it from the market", and increased Here, "America, China and other big consuming countries began, trying to rebuild their stocks, which generates plus oil, which could mean a request to start a new cycle of rising oil prices."

Saleh asserted the necessity of "no dumping of optimism about the possibility of rising global oil prices, but as long as they have moved up, the get off the bottom will not exceed sixty or $ 55 per barrel," and expressed hope that "the current wave the end of the fall in oil prices stage, and stability when current rates with the possibility of a future rise and decline of the role of the oil-producing companies from non-traditional sources. "

It is noteworthy that the price of oil fell more than a hundred dollars in the middle of the current year, 2014, to less than $ sixty now, especially after that overshadowed the increase in oil shale production of high-quality light, in North America on demand.

The Prime Minister, Haider al-Abadi, revealed in (the twentieth of October 2014), during a press conference after a meeting with religious Shiite, Ali al-Sistani, in Najaf and attended (the long-Presse), to discuss the issue of the budget three times, and we will work to provide balancing the advancing military spending as a fait accompli, noting that the budget in 2015, will be based on the 2014 current budget, due to the presence of the same problems, of oil from Kirkuk and stopped completely, as well as lower world prices, and expectations about to fall over, for this, the Council of Ministers decided to austerity.

The Iraqi Oil Ministry approved in (18 October 2014), the government has not yet determined the price of a barrel of crude to be adopted as a basis for the preparation of the budget next in 2015, indicating that efforts are currently ongoing in coordination with OPEC members, to determine the estimated taking into account the challenges and price fluctuations and global spare national economy, any negative impact, while experts called to the need to find alternatives to support the local economy and the adoption of the austerity policy and an end to disputes with the Kurdistan region of re-exports from the northern fields.


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