Economists expect a decline in the budget in 2015 in the event of continued fall in world oil prices

Economists expect a decline in the budget in 2015 in the event of continued fall in world oil prices

Posted 17/09/2014 08:59 AM

Economists expect a decline in the budget in 2015 in the event of continued fall in world oil pricesIn a time which saw global markets sharply lower oil prices did not occur for more than two years, varied expert opinions extent influenced by imports of the country’s oil this sudden drop prices of oil, expecting to reduce the amounts the federal budget for 2015 as a result of falling world oil prices, calling at the same time the government Federal Ministry of Oil and to work to increase production in order to compensate for the damage to the increased export due to the deteriorating security situation taking place in the country.

The oil expert Hamza Jeweler in an interview for the “long”, that “the main reason for the current decline in world oil prices is that a higher price of the dollar against other currencies.”

“The decline may continue to a period ranging between 6-12 months, depending on the economic cycle caused by the major powers during specific periods and thoughtful prayer economically and financially.”

He explained that “the wave of global terrorism and the deteriorating situation in Libya, contributed to the decline in global oil prices closely linked to the security situation on the territory of a number of countries which represents production rates in large amounts of oils traded in global markets.”

He stressed that “the Iraqi oil prices will be affected by this decline because of the Iraqi currency link directly to the American dollar is expected sale of Iraqi oil below $ 95, while maintaining the export figures and increase during the period when few leaders provide the security required for some areas as mayor of Kirkuk.

He said the “Big Seven countries are controlling the world economy through the first of the dollar and the currencies in addition to oil prices, and it allows them to reprogram the global economy according to the name of the economic cycle, which is repeated from time to time.”

The fall in the price of Brent crude to its lowest level in more than two years ago, yesterday, to come down from $ 97 a barrel after threw a series of weak economic data from China, the largest consumer of energy in the world a shadow on expectations of demand for oil amid an oversupply.

And grew production factories in China weakest pace in nearly six years in August, while also slowed growth in other key sectors which raised fears that the second largest economy in the world is at risk of a sharp slowdown.

The inn Brent contract in October, which expires today to 96.21 dollars a barrel, the lowest level since the second of July, 2012, and by 0730 GMT, futures recovered to around 96.40 dollars a barrel, down 71 cents.

The price of benchmark crude one dollar to 91.27 dollars a barrel after touching the level of 90.63 dollars a barrel, near its lowest price in 16 months of $ 90.43 hit last week.

The economist said Maytham defect in an interview for the “long”, that “the political situation and recent security at the level of the world formed a kind of cautious optimism which contributed to the move of some economic sectors in the world, including oil.”

“The Paris conference recently and before the Jeddah Conference, held to counter the threats posed by the organization Daash to various countries around the world have given positive indications managed markets whereby global oil markets exceeded the continued climb in oil prices in the world.”

He explained that “the previous period has seen the loss of more than 400 000 barrels per day of the total quantities of Iraqi oil source as a result of the deterioration of security in some oil-rich regions, which will be reflected on next year’s budget in 2015 in addition to the low prices in recent days to $ 97 a barrel.”

He stressed that “the government and work quickly to increase oil production to meet the low-cost in the event of continued deterioration of prices to long periods of time.”

The Web site reported by Bloomberg economic news, earlier in the report, seen by the “long-Presse”, “The Brent crude oil sale the highest price since nine months at the time preoccupied with the Iraqi forces to fight the militants organize Daash north of Baghdad,” noting that “crude and West Texas rose with Rhode report refers to a decline in American oil equipment. ”