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Parliamentarian: Iraq needs economic plans to protect it from oil price fluctuations
September 12, 2024
Baghdad/Iraq Observer
During the past three months, oil prices witnessed a clear decline, as oil prices fell from $90 per barrel to $70.2 at a time when 90% of Iraq’s imports depend on oil.
This decline will pose a challenge to the Iraqi economy through its impact on its operating and investment budget.
In this regard, a member of the Parliamentary Oil and Gas Committee, Aso Faridoun, confirmed that
“although Iraq has financial reserves in addition to the presence of gold reserves with the Central Bank and does not have any debts,
all of these elements have made the economic situation of Iraq much better than other countries in the region.”
He lacks an economic plan to protect him from oil price fluctuations.”
During his speech to Iraq Observer, a member of the Oil and Gas Committee called for the necessity of developing alternative sectors such as the industrial and agricultural sectors instead of relying on a single source of income and to be a auxiliary to it, as many countries did, including the Gulf countries, which fully secured their economy and emerged from the crucible of relying on oil as a sole source through plans. A development that has been around for about 15 years.”
Fereydoun pointed out that “oil, like other commodities, is affected by supply and demand factors.
For example, there is a clear decline in Chinese demand, as China possesses approximately 40% of the world’s oil imports.” He continued,
“Demand decreased from 16 million barrels per day to 8 million barrels, and
this coincided with an increase in the surplus in global markets as a result of the presence of a surplus from OPEC countries by 1 million 200 thousand barrels per day and non-OPEC by 200 to 400 thousand, an increase estimated at 1 million 400 thousand barrels per day, and this accumulated.”
The percentage cumulatively increased supply, reduced demand, and led to lower oil prices.” He pointed out that
“the decline in Chinese demand for oil in particular is due to two main reasons.
First, there is an expectation of a decline in the global economy, which will continue for the next three years, which means that the demand for fuel will decrease.
Secondly, China obtains oil from markets outside OPEC’s accounts, which, according to economic experts, represents a kind of destabilization.” It obtains oil from these markets at low prices.”
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September 12, 2024
Baghdad/Iraq Observer
During the past three months, oil prices witnessed a clear decline, as oil prices fell from $90 per barrel to $70.2 at a time when 90% of Iraq’s imports depend on oil.
This decline will pose a challenge to the Iraqi economy through its impact on its operating and investment budget.
In this regard, a member of the Parliamentary Oil and Gas Committee, Aso Faridoun, confirmed that
“although Iraq has financial reserves in addition to the presence of gold reserves with the Central Bank and does not have any debts,
all of these elements have made the economic situation of Iraq much better than other countries in the region.”
He lacks an economic plan to protect him from oil price fluctuations.”
During his speech to Iraq Observer, a member of the Oil and Gas Committee called for the necessity of developing alternative sectors such as the industrial and agricultural sectors instead of relying on a single source of income and to be a auxiliary to it, as many countries did, including the Gulf countries, which fully secured their economy and emerged from the crucible of relying on oil as a sole source through plans. A development that has been around for about 15 years.”
Fereydoun pointed out that “oil, like other commodities, is affected by supply and demand factors.
For example, there is a clear decline in Chinese demand, as China possesses approximately 40% of the world’s oil imports.” He continued,
“Demand decreased from 16 million barrels per day to 8 million barrels, and
this coincided with an increase in the surplus in global markets as a result of the presence of a surplus from OPEC countries by 1 million 200 thousand barrels per day and non-OPEC by 200 to 400 thousand, an increase estimated at 1 million 400 thousand barrels per day, and this accumulated.”
The percentage cumulatively increased supply, reduced demand, and led to lower oil prices.” He pointed out that
“the decline in Chinese demand for oil in particular is due to two main reasons.
First, there is an expectation of a decline in the global economy, which will continue for the next three years, which means that the demand for fuel will decrease.
Secondly, China obtains oil from markets outside OPEC’s accounts, which, according to economic experts, represents a kind of destabilization.” It obtains oil from these markets at low prices.”
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