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Oil Minister: the financial crisis will include most of the big oil companies and producing countries
08/23/2015 20:13 pm (Baghdad time)
Baghdad scales News
Oil Minister Adel Abdul-Mahdi, Sunday, that the financial crisis due to falling oil prices not only affect Iraq, but include most of the big oil companies and other producing countries.
Said Abdul-Mahdi, in a statement received / scales News /, that "Brent prices fell from 65.55, to $ / barrel 45 in June, July and August respectively .. The factors are many and analyzes, as well as Alterkabbat some of which point to continue the landing, while you see another that prices quickly backfire and rise again.
"He added that" There is no doubt that speculation a big role in it .. as well as the high dollar exchange rate, but economic factors remain the foundation, and we mean the continued increase in supply over demand, and the stalemate in the various economies, especially in Asia and in particular China, the second oil consumer in the world. "
And between, he "continued excess supply, has not led the price drop to expel marginal producers, on the contrary, increased production in Saudi Arabia, Iraq and countries from outside" OPEC ".. did not appear in the countries of the" OPEC "or the rest of the producing countries no desire to reduce production rates. . Also, the nuclear deal has increased the strength Alterkabbat to enter additional quantities of Iranian oil to markets, except the United States, and a few others. "
He pointed out that "where most of the economic indicators are good, economic growth indicators in Europe and Asia is still weak .. In China, for example, decreased activity of the industrial sector to the lowest level in more than six years because of lower exports and rates of domestic consumption, declined stocks in Asian markets after "ALWIL Street" decline because of growing fears of a recession in the global economy, so some resembles the current crisis crisis 1985-1986, when prices fell through a few months of $ 30 / barrel to $ / barrel 10 due to increased "OPEC" for production to regain market share After that the other producing countries have increased outside "OPEC" production ".
He stressed Abdul-Mahdi, that "the financial crisis due to falling oil prices do not affect Iraq only, because of the diversity of its economy, or infect countries," OPEC "Other such as Algeria, Venezuela and Iran, it is a general crisis include most of the big oil companies and producing countries and other, including the Gulf states also , Emirates was forced in recent weeks to reduce support rates of petroleum products to the citizens. "
He noted that "Saudi Arabia, despite the great financial capabilities, which accumulated over the past years, but the central bank reserves fell by 10% during the last ten months, to reach 2.5 trillion SAR."
He continued to say that Saudi Arabia have to do what you have not done over the past eight years; so as to cover the deficit by issuing treasury bonds worth 20 billion riyals "$ 5.33 billion" ..
It sold in June 15 billion riyals of bonds to the government-funded organization. Note that more than 80% of Saudi Arabia revenue Foreign comes from oil and its derivatives exports, and reports say that it will float debt worth 100-200 billion riyals this year to meet the growing deficit due to lower oil prices, and cost the growing war in Yemen and participation in the international coalition in the war against Daash ".anthy / 29 / d 24
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08/23/2015 20:13 pm (Baghdad time)
Baghdad scales News
Oil Minister Adel Abdul-Mahdi, Sunday, that the financial crisis due to falling oil prices not only affect Iraq, but include most of the big oil companies and other producing countries.
Said Abdul-Mahdi, in a statement received / scales News /, that "Brent prices fell from 65.55, to $ / barrel 45 in June, July and August respectively .. The factors are many and analyzes, as well as Alterkabbat some of which point to continue the landing, while you see another that prices quickly backfire and rise again.
"He added that" There is no doubt that speculation a big role in it .. as well as the high dollar exchange rate, but economic factors remain the foundation, and we mean the continued increase in supply over demand, and the stalemate in the various economies, especially in Asia and in particular China, the second oil consumer in the world. "
And between, he "continued excess supply, has not led the price drop to expel marginal producers, on the contrary, increased production in Saudi Arabia, Iraq and countries from outside" OPEC ".. did not appear in the countries of the" OPEC "or the rest of the producing countries no desire to reduce production rates. . Also, the nuclear deal has increased the strength Alterkabbat to enter additional quantities of Iranian oil to markets, except the United States, and a few others. "
He pointed out that "where most of the economic indicators are good, economic growth indicators in Europe and Asia is still weak .. In China, for example, decreased activity of the industrial sector to the lowest level in more than six years because of lower exports and rates of domestic consumption, declined stocks in Asian markets after "ALWIL Street" decline because of growing fears of a recession in the global economy, so some resembles the current crisis crisis 1985-1986, when prices fell through a few months of $ 30 / barrel to $ / barrel 10 due to increased "OPEC" for production to regain market share After that the other producing countries have increased outside "OPEC" production ".
He stressed Abdul-Mahdi, that "the financial crisis due to falling oil prices do not affect Iraq only, because of the diversity of its economy, or infect countries," OPEC "Other such as Algeria, Venezuela and Iran, it is a general crisis include most of the big oil companies and producing countries and other, including the Gulf states also , Emirates was forced in recent weeks to reduce support rates of petroleum products to the citizens. "
He noted that "Saudi Arabia, despite the great financial capabilities, which accumulated over the past years, but the central bank reserves fell by 10% during the last ten months, to reach 2.5 trillion SAR."
He continued to say that Saudi Arabia have to do what you have not done over the past eight years; so as to cover the deficit by issuing treasury bonds worth 20 billion riyals "$ 5.33 billion" ..
It sold in June 15 billion riyals of bonds to the government-funded organization. Note that more than 80% of Saudi Arabia revenue Foreign comes from oil and its derivatives exports, and reports say that it will float debt worth 100-200 billion riyals this year to meet the growing deficit due to lower oil prices, and cost the growing war in Yemen and participation in the international coalition in the war against Daash ".anthy / 29 / d 24
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