Iraq .. high oil revenues and expectations of a decrease in the budget deficit
Iraq .. high oil revenues and expectations of a decrease in the budget deficit
Tuesday 1 June 2021 | 05:34 PM
The Ministry of Oil announced that it achieved revenues of more than five billion and 882 million dollars from the sale of oil for the month of May only, an increase of about 300 million dollars over the revenues of the previous month.
Iraq is awaiting the next meeting of the OPEC group with oil-producing countries outside it, to increase production in light of the great recovery in demand due to the start of life returning to normal due to the increase in vaccines against the Corona virus and the beginning of its decline in many countries, which increases Iraq’s share in exports, according to many observers of prices market.
During the month, Iraq exports about 90 million barrels, and after the OPEC meeting, it is scheduled to raise its quota by about 5 million per month, which is reflected in the revenues generated and reduces the deficit in the current year’s budget.
On this issue, the economic expert, Faleh Al-Zubaidi, said in a press statement that “the rise in dollar prices and the difference between the price of a barrel in the budget for this year from the market price is up to 25 dollars per barrel and expectations that oil prices will exceed this year the 70 dollars barrier, which will contribute to reducing the budget deficit and does not end it.” .
Regarding the disability rate, Al-Zubaidi adds, “It is not possible to calculate the percentage of the disability decrease, because it is measured on an annual basis, and only four months have passed from the previous year.”
For his part, the Rapporteur of the Parliamentary Finance Committee, Ahmed Al-Saffar, said, “The difference between the current oil price and the planned price in the budget, which was set at (45) dollars, is used to finance the deficit in the budget, and is also used in the investment budget.”
Al-Saffar asserts, “It is not possible to convert the price difference into job grades.”
Observers of the movement of the Iraqi economy confirm that “the difference in the selling price of oil may lead to a decrease in the deficit, especially since it is hypothetical and not real. Port taxes and revenues.
aynaliraqnews.com
