Parliament exclude oil falling to $ 40 .. does not deny the possibility of resorting to the reserve currency
Parliament exclude oil falling to $ 40 .. does not deny the possibility of resorting to the reserve currency
12/09/2014 (00:01 pm)
BAGHDAD / Mohammad Sabah
The Commission on parliamentary power, the presence of multiple government measures to avoid any potential drop in oil prices to under $ 50. The sources did not exclude recourse cash reserves at the central bank or borrow from private banks.
As described any reduction in price to around $ 40 as a “global catastrophe”, ruled this unexpected scenario return prices to rise again.
In turn confirms the economic advisor to the prime minister in charge of the State Commission reviewed the budget in 2015 “will take all the possibilities projected in oil prices,” expected to discuss Cabinet draft of the proposed budget for next week. Oil prices fell more than a dollar on Monday after being cut Morgan Stanley forecast for Brent crude, while Chinese trade, which have been mixed in the market supporting data did not contribute.
quoted by Reuters news agency, “Morgan Stanley”, which is one of the most banking institutions and the largest in the United States, she said in a recent report that “in the absence of OPEC intervention will face market risk imbalance with the possible arrival of the increase in supply to the peak in the second quarter of 2015,” she told Reuters that the “worst is estimated to fall in oil to $ 43 in the second quarter of next year “. He says Ugaili Aziz, a member of the Commission on oil and energy parliamentary “long”, that “the sale of Iraqi oil price is lower than advertised in the global markets with ten dollars,” and acknowledged that “one of the reasons for delay in adoption of the budget due to the fluctuation of oil prices.” He adds Ugaili, a member of the citizen’s parliamentary bloc, that “the issue of restricting the general budget at a specified price per barrel has become difficult because of the constant changes in oil prices,” he said, adding that “the Iraqi state is facing a serious challenge to the adoption of the budget on oil revenues by 95%.” Commenting leader of the Supreme Council for the expected decline by saying, “In the event of oil prices below $ 50, also expects global institutions, we will be unable to pay even salaries to civil servants,” But he said, “In such a scenario can be resorted to the use of central bank reserves, B77, which is estimated billion dollars allocated to emergency situations. ” The world oil prices fell last November to its lowest level since May 2010 after the organization decided (OPEC) not to cut production, leaving an abundance of supply markets. And confirms a member of the parliamentary Committee on Oil and energy that “alternatives are available and we have found such as resorting to borrowing from private banks,” and believed that “the government is able to skip Ayew expected to occur economic crisis in the coming months.” But MP Aziz Ugaili exclude falling oil prices to $ 43 per barrel in the next year, adding that “what we see from the steady decline in international prices is normal already happened in prices in 2009.”
turn expected Kawa Mahmoud, the other member of the Oil and Energy Committee Parliament, that the price of a barrel of oil up to $ 60, but most likely higher prices in the coming period due to the needs of the winter.
He described Kawa Mahmoud, in his speech for the “long”, falling world oil prices to $ 40 as “would be a disaster for the world economy, not just the Iraqi “stressing” difficult to predict global oil prices because they are linked to oil policy. ”
In the same context, attribute the appearance of Dr. Mohammed Saleh, an economic advisor to the Prime Minister, the reasons for the drop in oil prices to a “shale oil production in the United States about a million barrels a day is offset by the lack of in demand for the purchase of the oil extracted by conventional methods. “He added Saleh, in a statement to the” long “, that” rock production began compensates part of America’s oil consumption, because they are produced in quantities of about 5 million barrels a day. ”
It emphasizes economic advisor to the Prime Minister on ” the need to rebuild global oil inventories in line with consumer demand for oil, which up to 93 million barrels Jeremiah “, but ruled out” fall in oil prices below $ 50 in the next year. ”
It is proposed that the appearance of Mohammed Saleh “to increase the export and production of oil to fill the shortfall down prices.” , confirming the presence of governmental processors rapid declines in the price of a barrel of oil. The attention of the Iraqi economic expert that “the Committee of Five, which includes a number of current and former ministers and experts in the field of oil and finance, is working to amend the draft federal budget for 2015 Act, to take all possible eventualities in oil prices,” expected to “be providing the federal budget to Cabinet next week for discussion. ”
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