Abadi adviser: high oil prices will offset the budget loss since 2014

Abadi adviser: high oil prices will offset the budget loss since 2014

Sun, 14 Jan 2018 08:24:48

Abadi adviser - high oil prices will offset the budget loss since 2014The financial adviser to the prime minister, the appearance of Mohammed Saleh, said on Sunday that the continued rise in world oil prices, will compensate for what Iraq lost in the past four years.

Saleh said in a statement, today, that “the continuation of the rise in oil prices in the world will compensate for large amounts of the federal budget, lost as a result of the significant decline in oil prices since 2014,” as he put it.

He explained that “many economic and geopolitical reasons lie behind the continuous increase in the price of crude oil in the global market, foremost among which is the realization of all oil producers that the dumping of the market according to the policy prior to the OPEC agreement, has been in the interest of many opposites in international politics and enabled the superpowers From the acquisition of cheap energy. ”

He added that “the new price balances that broke through the $ 70 a barrel are necessary to rebuild the production cost to compensate the losses suffered by oil companies, because of the high investment costs of low returns caused by the low price of oil produced in the previous period, especially problems of the cost of production of rock oil in the north American continent. ”

“Due to the lack of inventories of crude oil and petroleum products in the US, futures markets in crude oil trading have really reversed and collided with so-called long positions that are now buying at a low price in order to sell at a higher price, From short to long, which contributes to the increase in oil prices and escalated by speculation in the prices of crude oil in the futures market. ”

Oil prices rose above $ 70 a barrel for the first time since 2014 in oil markets in the past few days.

Iraq has suffered a severe economic crisis since 2014 because of the drop in oil prices below $ 40, as well as the attacks of an organization calling for several areas in the country, and Iraq’s need for a military effort to confront the organization.