Expectations of lower oil prices to $ 50 a barrel

Expectations of lower oil prices to $ 50 a barrel

Date: Monday 07/02/2012 1:24

 Baghdad / Ahmed Abed Rabbo
, an economist predicted Majid picture drop in oil prices in the coming days to $ 50 per barrel, noting that it reflected negatively on the state budget. He said the picture for (range): The successive governments to Iraq since 2003 did not take advantage of the surplus-winning oil imports in the processes of economic development for all sectors,

Projects of development would be implemented only through the general budget as well as the lack of accurate census of the financial situation of the country, noting that it made the distribution of capital randomly prompted to escape foreign currency abroad.
For his part, said the economist Ali gnathion NA (range) that this continued decline in world oil prices will directly affect the public budget, explaining the adoption of the latter by more than 98% on oil revenues, calling for time itself to the need to reduce public expenditures of the state.
He gnathion NA: that the world economy depends with the present oil by 85% and that the decline in oil prices will push other commodities to decline gradually, pointing out that the government should take the present time the necessary measures to prevent the problem. The Committee of Finance parliamentary concern about the continuing decline in oil prices in world markets and their impact on the overall budget of the state, pointing out that in the event of a continued decline will be determined mechanisms to overcome the crisis agreement of the parties concerned.
A member of the Church Mustafa in a press statement that Iraq’s budget is built on energy export oil by 2.6 million barrels at $ 85 per barrel, but six months ago and so far have not reached the proportion of export to the limit, as there are lower oil prices in global markets.
said Mustafa that the decline oil prices may affect the overall federal budget, pointing out that he “In the event of continued decline will be a meeting of the Committee with the Ministries of Planning and Finance to study the problem.”
The prices of the sale of oil in world markets declined significantly represents a drop price of a barrel to $ 30 within a period of three months, where they settled on $ 97.
at the same time attributed the Council of Ministers cause of the low global oil prices to double the growth of the global economy and the euro crisis, stressing that this impacts negatively on the Iraqi economy, as called for diversification of Iraq’s resources economically.
The head of the advisory board of the Council Thamer Ghadban The Organization of Petroleum Exporting Countries agreed at its last meeting the adoption of the former production of oil, amounting to 30 million barrels a day, to raise the price of oil, but it is still low due to the presence of excess oil market is estimated two million barrels per day.
He Ghadhban that the summer season witnessed by the countries of Europe, have also influenced the decline in global oil prices, likely “these high prices with beginning of the season next winter after landing this summer by 25% from the prices during the winter past. ”
The Anger that “the decline in these prices will impact heavily on the oil-producing countries, especially those that rely on it in its budget, financial, such as Iraq, Algeria, Iran, Libya, Nigeria,” pointing to the “The last meeting of the OPEC countries was focused on the need to maintain a stable price for oil prices.”
He Ghadhban that “the government set the price of a barrel of crude oil $ 85 as the basis for Iraq’s budget for 2012,” explaining that “the falling price for this level will directly affect on imports of the state and investment activity in the development of various economic sectors. ” He called Ghadhban the government of “the need to diversify its economy and turn from an exporter of crude oil to the producing and using petroleum products and gas, such as nutrients for other industries Kalptrkimaoyat, fertilizer and other industries, to get the economic benefit next to crude oil.”
Source: almadapaper