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Increase the fears of the effects of swings in oil prices
07/04/2012 0:00
BAGHDAD - Haider Filaih Rubaie
expressed interested in the economic fears of continued decline in oil prices globally, arguing that Iraq is a country depends mainly on the proceeds of the sale of oil in the promotion and imports of financial, as expressed to the Commission on oil and energy parliamentary concern over the decline in oil prices and the possibility of impact on the economic reality in the country, he drew an oil expert at the consequences and international interventions have affected remarkably the stability of oil prices globally, stressing that economic and political crises have played the other role in the decline in oil prices.
has warned Member of the Commission on oil and energy parliamentary Susan Saad government, which it called (disaster economic) said it could cause the country as a result of continued low oil prices in world markets, especially that he is the sole supplier of the general budget of the state.
explained Saad in a statement received (morning) a copy of that dependence on oil as a source basis to run the country economically is very dangerous, especially that any fluctuation in oil prices will impact on the state budget.
a sign that the construction budget prepared according to the capacity of the oil of 2.6 million barrels per day, which is the energy that had not told her Iraq so far, according to Saad expressed fears of continued decline in oil prices to what without number that was built on this basis the general budget is $ 85 a barrel. Claim at the same time the concerned authorities in this regard to make plans and mechanisms of a new economic and the Court and held extensive meetings to avoid the negative effects of the resulting decline.
Iraq relies 95 percent on oil revenues to support Moisnath annual and establishment of construction projects and strategic task, as well as the use of those revenues to cover the shortfall in the fiscal budget, which could cause serious economic disturbances if the continued decline in oil prices, especially under $ 85, a price that was built on this basis the annual budget for the current year 2012. The oil price Ankhvzt globally nearly $ 30 in three months, at a time, which was sold through a barrel of oil to $ 120, fell apart now up to the limits of $ 95, has recorded Brent and U.S. crude largest quarterly loss last Friday since the last quarter of the year 2008 due to weak demand and abundant supply, and economic worries. according to the agency (Reuters), which also confirmed that prices recovered in late session on Friday, following an agreement between the leaders of Europe to rescue the banks of the eurozone. And increased the time futures contracts for Brent crude for more than six dollars a barrel for about $ 98 while jumping U.S. light crude for more than seven dollars to a settle at slightly less than $ 85 a barrel.
Meanwhile, the accused member of the Commission on oil and energy parliamentary Ali Fayad, countries producing oil did not name of trying to make Iraq a country away from the global development in the extractive industries of oil and gas and its pursuit that does not become an active and influential in the markets the world's oil.
He hospitality during a press statement that the percentage of reserves in Iraq's oil and gas form (11 percent) of the total world reserves, according to report the International Energy Agency, it will be a key player in the oil markets world after ten years from now and will fall on his shoulder a great responsibility in bridging the world's need of oil.
did not seem Fayad surprise at the attempts of some oil-producing countries obstruct the good Iraqi efforts to promote its economy, saying that most of the countries Regional surrounding country, especially producing and exporting oil refuses to Iraq to be an active and influential in the markets the world's oil and the level of responsibility and has the capabilities and expertise in the field of energy and oil.
criticize economists from time to time near total dependence on oil revenues to support the budgets of the country's financial, to arguing that the crisis and global economic volatility in oil prices could put Iraq in the positions of critical economic, a matter which is expected earning in the event of continued oil price decline. and calls on economists to the need that Iraq is seeking to activate the many aspects of production of other non-oil, especially farming, including industrial and , for arguing that these economic areas are able to fill a good part of the financial needs of Iraq's non-oil, as well as its ability to eliminate unemployment and meet the needs of the local market of materials and goods that are imported now from neighboring countries and others.
and played world crises negative role decline in oil prices, especially during the year 2009, when collapsed, oil prices up to around 30 dollars per barrel, and with it forced Iraq to cut its annual budget three times in succession after the referee a barrel of oil at the time of 65 dollars, which caused a deficit evident in the annual budget of the country .
Although the crisis is a major player in reducing world oil prices, but oil expert Hamza Jeweler attributed the causes of fluctuations in oil prices and falling to the decisions and interventions, major countries which he said was manipulated oil prices in the global market. and local expert that the major countries are offering large amounts of oil on world markets at prices low thereby reducing the price of Iraqi oil and other types of oils other world, stressing that the major powers possess large quantities of oil as a result of methods of non-traditional, which followed in the extraction of oil routes (Shell Oil) and (Kaz Oil), indicating that the use of the major countries in non-traditional methods of oil extraction led to a rise in the surplus extracted and raised in international markets, which caused a subsequent reduction in oil prices.
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