An economist showing the extent to which budget expenditures can be covered after OPEC decisions
An economist showing the extent to which budget expenditures can be covered after OPEC decisions
9-10-2023
Information / Baghdad…
The economic expert, Safwan Qusay, explained on Sunday the extent of the possibility of covering budget expenses with OPEC’s decisions to reduce oil exports by 211 thousand barrels per day.
Qusay told Al-Maalouma, “The oil fields of Kirkuk and the region are characterized by the fact that their prices are at the same level as the prices of Brent oil, and Iraq can bear the burden of losing its increased exports from the fields of the south because the price difference tends towards exports from the fields of Kirkuk and the region, so everyone is seeking to restore the export line.” To the Turkish port of Ceyhan.
He added, “Despite Iraq’s compliance with OPEC’s decision to reduce exports by 211,000 barrels per day, the total impact is $3 billion annually,” pointing out that “increasing the price of oil to $74 means that it will cover the approved cuts on Iraqi oil, while Prices are rising to more than $80 per barrel.
He stated that “Iraq needs the price of a barrel of oil to be at the threshold of $74 per barrel, in order to cover budget expenses.”
He pointed out that “actual revenues cover the actual need in the budget and even more than it, despite OPEC’s decision to reduce exports.”
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