Oil prices rebound slightly, and Iraq’s economy “will not last long”

Today, Tuesday, [You must be registered and logged in to see this link.] prices witnessed a strong recovery in "Asia" trading, a day after its decline to its lowest level in 18 years, while strengthening the decision-makers' steps to support the global economy affected by the " [You must be registered and logged in to see this link.] " emerging investor confidence.

WTI rose by 7.3 percent to record 21.5 dollars per barrel, while Brent International benchmark crude rose 3.3 percent to 23.5 dollars per barrel, according to Agence France-Presse.

The agency noted that "the oil markets fell at a time when the governments of the world imposed complete isolation measures to prevent the spread of the virus, which caused a decrease in demand for crude."

About one-fifth of the world's population is now isolated in their homes, while the death toll from Covid-19 caused by the emerging Corona virus has risen to more than 37,000, at a time when the epidemic is increasing dangerously in the [You must be registered and logged in to see this link.] .

She pointed out that "the crisis has worsened after the largest oil producers in [You must be registered and logged in to see this link.] Russia launched a price war, followed by disputes about reducing production to support energy markets affected by the virus."

Noting that "the markets improved as well, due to the contact that took place yesterday, Monday, between US President Donald Trump and his Russian counterpart, [You must be registered and logged in to see this link.] where they discussed oil prices."

On the level of Iraq, stressed the economic expert Salah al - Zaidi, the [You must be registered and logged in to see this link.] and in the event of continuing oil price crisis, it will not survive long.

He explained in press statements, that "the US dollar exchange rates will rise from their normal level and the central bank will lose its control over them after / 6 / months of the day in the event of continuing low oil prices."

He pointed out that «the central bank reserves amount to 60 billion dollars, but this amount and if it was manipulated, the dollar exchange rate will be affected if the current economic crisis continues».

During the past weeks, the suffering of the Iraqi economy increased after the drop in oil prices to less than half due to the price war between [You must be registered and logged in to see this link.] and [You must be registered and logged in to see this link.] . The price of a barrel became about $ 30 instead of $ 60 at the end of last December.

"Fatih Birol", executive director of the [You must be registered and logged in to see this link.] based International Energy Agency , said that the low prices "dealt a heavy blow to the oil-dependent economies, but the strongest blow will be to Iraq because of the crises that it is suffering."

Birol continued, saying: "Iraq is the most affected country, because it does not have financial reserves, and because (90%) of its revenues come from oil, and all of these economic pressures come in a very tense political environment already."

The Minister of Health, [You must be registered and logged in to see this link.] , has said that he will need $ 150 million a month to purchase the equipment he needs to combat “Corona”, but he has collected only a small portion of this amount, which could exacerbate the epidemic crisis in Iraq in the coming weeks. , Which deepens the political and economic crisis


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