An advisor to the Prime Minister warns of a potential budget deficit due to the decline in oil prices.
An advisor to the Prime Minister warns of a potential budget deficit due to the decline in oil prices.
2025/05/29
The Prime Minister’s financial advisor, Mazhar Mohammed Salih, warned on Thursday of a worsening deficit in Iraq’s three-year general budget, attributing this to the widening gap between the approved oil price in the budget ($70 per barrel) and the current low actual prices.
Saleh explained to Al Furat News Agency that “the current decline in the price of exported crude oil to less than $65 per barrel could lead to an actual budget deficit if this trend continues.”
The financial advisor noted that “this negative trend in oil prices is fueled by numerous external international factors,” most notably “increased production by the OPEC+ alliance, which is expected to lead to further pressure on prices.”
Saleh pointed out that “this coincides with a major global soft trade war between the United States, China, and Europe,” adding that “the volatility in global market activity will remain subject to geopolitical tensions and global economic changes that negatively impact the stability of oil prices and demand.”
alforatnews.iq
