Iraq to cut crude oil prices to Asia and America, with increasing offers

Iraq to cut crude oil prices to Asia and America, with increasing offers

Posted, December 09 December 2014 23:25

Iraq to cut crude oil prices to Asia and America with increasing offers[Follow-where]

The Iraqi Oil Marketing Company Sumo Monday that Iraq cut the official selling Basrah Light crude destined to Asia and the United States for download in the month of January next price but slightly raise the price of crude destined for Europe.

This comes after Saudi Arabia held a sharp cut to the official selling price of crude going to Asia and the United States last week.

Analysts and traders believe that the two are competing to keep the share of each of them in a market saturated with supplies supply.

Sumo and reduced the official price of Basrah Light crude destined to Asia to download next month to the average crude price of Dubai and Oman minus four dollars a barrel equivalent of minus $ 2.15 a barrel in this December shipments.

Sumo official price of Basrah Light crude destined for the United States for shipments next month and reduced to the Argus index minus 40 cents a barrel from minus ten cents cursor in this December shipments.

Sumo also raised the price a bit crude destined for Europe equivalent to the immediate Brent crude minus $ 4.35 a barrel to ship next month, compared with the equivalent of minus $ 4.45 for shipments this month.

It is said that Iraq suffers from a difficult economic situation because of the shortfall in the budget year 2015, which is estimated according to Finance Minister Hoshyar Zebari at about $ 40 billion, to coincide with the fall in world oil prices, which make up 90 percent of Iraq’s imports.

As Deputy Prime Minister Bahaa al-Araji revealed to [where] the arrival of the special protections of the expenses of the officials’ salaries and equipment to one billion dollars.

In an attempt to cut costs by reducing the cabinet initiated salaries, including his boss and his deputies to 50% has also taken Riasta Republic and the House of Representatives a similar step in addition to the citizen Bloc study with a coalition of state law for the step.

The Council of Ministers is working on the preparation of the budget and revised to reduce the ceiling price of oil from $ 70 to $ 64 or less to meet the deficit.

Hoshyar Zebari, Minister of Finance also revealed that, on Friday, in a press statement about the intention of his ministry reducing the budget in 2015 to 120 trillion dinars, after it was 155 trillion dinars to reduce the deficit through a review of its provisions with the Ministries of State, and the search for domestic sources to reduce the deficit rather than foreign borrowing .

Finance Minister explained that “a large deficit in the budget requires us rationalize spending in order to be accepted and be under the roof of 30 trillion dinars because the current figure for the deficit of 47 trillion is too big,” he said, adding that “the reduction will focus on the part of the investment budget and some of the projects and some of the things other. ”

And that “there is a debate about the calculation of the price of a barrel of oil in the budget between 60 to $ 70,” following up “We are committed to a price of $ 70 a barrel for the expected increase in oil prices because of the winter.”

It is said that the Oil Ministry announced Monday that the statistical initial oil exports for the month of November last achieved a rise in the average daily quantities of exported crude oil compared to previous months, reaching 2.51 million barrels.

The spokesman said the ministry, Assem Jihad said in a statement received [where] a copy of “the amount of total exports amounted to 75 million and 310 000 barrels revenues amounted to five billion and $ 250 million based on the price of $ 70 and 4 cents per barrel” .anthy