Cut oil production in Iraq generates $ 4 billion a year

Cut oil production in Iraq generates $ 4 billion a year


 Baghdad / Zahraa Al-Jassem

After the extension of the Organization of Petroleum Exporting Countries "OPEC" agreement on reducing oil production , another nine months in order to withdraw surplus production and raise oil prices to $ 60 a barrel , and the face of any deterioration of the prices of crude, the International Energy Agency data show that Iraq is making now of the extension agreement daily profit of $ 10 million.
Which means that the net profit per year may be close to four billion dollars, which represents a good compensation for me by Iraq from a loss because of low oil prices left a deficit in Moisnath, with the rise in the recent price of oil by about 1.5% to $ 52.26, may increase Iraq 's profit more, even though the Iraqi oil is sold at a lower price by about $ 7 a barrel.
It confirms a spokesman for the Oil Ministry , Assem Jihad , in an interview (range), that the step taken by producers inside OPEC and beyond, including Iraq, was aimed at boosting oil prices , after falling, and to control the oversupply in the global oil market, adding that, when the reduction process began in the first half of this year, bringing the price below $ 40 a barrel, and it could have to fall more, so she OPEC to take this step , which helped raise the price of more than $ 50 a barrel, and remained ranges at this price. He noted Jihad, that the extension agreement was also the result of consensus visions between Iraq, Saudi Arabia, Russia and Algeria are also with them.
And continue Jihad by saying: oil - producing countries aspiring to exceed the prices of "$ 60 a barrel during the next phase, so the increase every dollar new is added to the current price, is added in the revenues of these countries, including Iraq, and reduces the proportion of losses incurred by these countries in the last period, adding: While it is not now available to our interest , or increase the size of the Iraqi imports due to the rise in oil prices, but in general, any increase is monitored by the government for the price of a barrel within the federal budget is an additional income contributes to reducing the budget deficit ratio General, has Tjao V Oil Ministry figure speculative set by the government in the budget year 2017 for the price of a barrel, however , we aspire to achieve more than this percentage, leading to instability and a deficit in the federal budget for the coming years.
He had reached an agreement to cut oil production among countries within OPEC in September last year for six months, as agreed after Russia and ten non - member countries in OPEC to participate in the production cuts implemented by the Organization for the first time in 15 years, to arrive last week to an agreement between producers , OPEC non - members led by Moscow to extend the cuts in production for nine Of additional months until March of next year, should OPEC members to cut output by 1.2 barrels per day.
An expert on oil affairs Hamza jeweler draws in an interview (range) that Iraq now achieves more profitable despite the reduction of its production because the cut for him is limited not to exceed the "206 thousand barrels per day, adding: The increase in the price of a barrel cover loss reduction production and even increase it, so that our net big profits, so Iraq is making a profit per day of $ 10 million, according to the IEA state, this means that Iraq 's net income per year could be closer to four billion dollars.
according to the jeweler said it also: hurt in the interest of Iraq in the long term, the fact that the issue of a temporary reduction of production and It is the result of the presence of quantities of oil when speculators is controlled by producing countries, in the sense in order to control the markets must only be key factors are two of the work, namely the product of any supply and consumer any demand, and in case there is more than one point of exposure, and I mean here speculators , will control the movement of the market is very difficult, so the quantities that were the speculators during the price fall period increased to 150 million barrels, and these quantities require a long period of up nearly two years until the drains, and even the depletion of those quantities will keep producing countries suffer from the reduction process production or frozen.
Iraq relies on oil revenues to finance up to 95 percent of expenditures; which makes unilateral and our economy vulnerable to fluctuations, based on crude prices in the global markets.

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