A big blow to the oil … and the “massacre” of the Iraqi budget

A big blow to the oil … and the “massacre” of the Iraqi budget

09/11/2014 (0:01 pm)

A big blow to the oil - and the massacre of the Iraqi budgetBaghdad-Erbil – Washington / Range (Reuters) AP

The October last months Black Black Gold, Prices futures barrel combination «Brent» benchmark crude oil fell below $ 85, from more than $ 115 in June, despite the fact that the risks of interruptions in supplies did not reach alarming levels. It does not appear that the Organization of Petroleum Exporting Countries (OPEC) cut production to enhance the price when oil ministers of the Organization held their regular meeting in November 27 (November).

Yesterday, the price came down «Brent» for the second consecutive session to below $ 83 a barrel on concerns about the rise of the dollar, which increases the cost of commodities denominated in the US currency on the buyers of holders of other currencies. The price lost 52 cents to $ 82.34 a barrel, after falling 90 cents in the previous session. The price of crude fell nearly four percent since the beginning of the week. And US crude fell 42 cents to $ 77.49 a barrel.
Varies the amount of vulnerability to oil prices greatly between «OPEC» members of Qatar is that you need to reach the oil price of $ 58 a barrel just to balance the budget, compared to $ 136 in Iran. And also differ from the reserves of foreign currencies varies widely Saudi Arabia has reserves of foreign exchange and gold worth 730.5 billion dollars while the value of Venezuela’s reserves amount to $ 21.2 billion only. (See page 12)
And a few days ago confirmed the Secretary-General’s «OPEC» Abdullah al-Badri said the fundamental factors do not justify the sharp drop in oil prices and the expectation that prices recover by the second half of 2015. He said at a press conference during the launch of the organization «the world’s oil prospects report for 2014»: «We But we are concerned not panic. » And suggested «OPEC» in the report that the average global demand for crude 28.5 million barrels per day in 2018, down 1.5 million barrels per day for 2014 due to increased supply from outside the organization, despite rising global demand ..
And frozen rock oil producers in the states of Texas, North Dakota Americas plans to expand production due to the drop in global oil prices, The cost of production for them is higher than with traditional oil producers. But the report’s «Citibank» stressed that the price of a barrel of oil should be $ 50 to the oil shale industry in the United States have to stop completely. The report stressed the «RBC Capital Markets» that the decline so sharply bounces until it is harmful to the oil-producing countries traditional.
Iraqi budget lost 27 per cent of the projected revenues, as a result of the global decline in oil prices, which constitutes the Iraqi economy President supplier.
And announced that the Iraqi Oil Ministry said in a statement Saturday that “the Iraqi economy and the federal budget affected much (…) and lost more than 27 per cent of the projected revenue for this year.”
Oil prices have fallen in the global market has grown substantially since June, and reached record levels not seen in three years.
Iraq’s economy is mainly dependent on oil exports, which constitute the main supplier for the expenses of seeking to increase its oil imports to invest in infrastructure and to cover the costs of government spending. The ministry said “the adoption of the new price for a barrel of oil within the 2014 budget, according to an objective study of the precise economic perspective, taking into account the changes and developments in the global oil markets, and the decline in oil prices and future prospects.”
Iraqi parliament did not approve the 2014 budget year, because of political differences, especially between the central government in Baghdad and the Kurdistan Regional Government, and the quota allocated to the region from oil revenues and the general budget.
On the other hand announced the Ministry of Natural Resources in the Kurdistan Regional Government, on Saturday, to raise crude oil export volume across the Kurdistan region of line Turkey to 300 thousand barrels per day, and with expected higher exports to 500 000 barrels per day, the end of the next year, 2015, confirmed that the All oil imports is a constitutional entitlement to the Kurdistan region.
The Ministry of Natural Resources in a statement received (range Press) copy of it, “in the first week of the month of November of this year, 2014, was starting to export 300 thousand barrels per day of crude oil from the Kurdistan region to Turkey since last August log export crude oil through Turkey Kurdistan line 185 thousand barrels. ”
The ministry added that “all oil imports is a constitutional entitlement to the Kurdistan region within the 17% allocated to the territory of Iraq’s resources and this amount is only a small part of the dues annual Kurdistan region within Iraq’s budget for 2014, which the federal government has decided to cut it off since the month of January of this year.”
The ministry said that “he has to increase the amount of oil exports to Turkey during the past four months by 60% and that it plans to raise the volume of oil production source to 400 thousand barrels by the end of this year,” unexpected “higher production by the first quarter of next year in 2015 to 500 thousand barrels per day and will reach its production to one million barrels per day by the end of 2015 and beginning of 2016 “.
The ministry expressed “pleased to raise oil production,” pointing out that “the Kurdistan Regional Government implements constitutional rights in the field of management, production and marketing resources of nature.”
The ministry continued that “since January of this year, 2014, I managed the Kurdistan Regional Government from the sale of 34.5 million barrels of the Kurdistan region of oil through the Turkish port of Ceyhan as well as the export of other quantities by tankers to the Turkish Mersin region,” indicating that “the total amount of exported oil value is $ 2.87 billion was received $ 2.1 billion in cash and $ 775 million was delivered through the eyes of a switch consisting of 710 thousand tons of white oil, gasoline and diesel products. ”