Experts: harnessing the benefits of oil revenues to create a diversified economy

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Economists pointed to an increasing demand for crude oil, especially after the economic crisis that swept the world after the year 2008, including East Asian countries, India and China, which have become important markets for Iraqi oil.

Economic expert on behalf of Jamil Antoine considered that oil prices will not fall below $ 100 per barrel, especially as India began relying on Iraqi oil, which fills half its need and at prices not less than a hundred dollars.

Antoine said in a statement (morning): "The adoption of the price of a barrel of Iraqi oil between $ 85-90 in the preparation of budgets is reasonable, there is also a financial surplus of public budgets, as well as increasing the amount of oil production per year", although the complaint oil companies about power Alkhoznip low for the oil ministry which has to be raised to 12 million barrels.

Reserve Alkhozna

The expert pointed out that Iraq is the oldest building reservoirs in South Korea for four million barrels a precaution in the event of any crisis or economic problems or sabotage, or cut through the Strait of Hormuz, because the Iraqi budget relies heavily on oil, meaning that 95 percent of the general budget dependent on oil revenues, so the flow of this production is very necessary and must be guaranteed, he says.

Oil revenues

The Oil Minister Abdul Karim and coffee had been announced on the sidelines of the Forum's fifth round table of oil producers and consumers in Asia, which was held in Seoul earlier this month, the determination of Iraq to store 4 million barrels of crude oil in South Korea.

He noted Antoine that the main objective of oil revenues is to harness the benefits of a diversified economy industrial, agricultural and tourism, as the reliance on a single source keeps the budget in constant danger, in addition to the country in front of a big problem, a phenomenon of unemployment, indicating that the oil sector does not hold more than 2 percent of the labor force, while the industrial and agricultural sectors and tourism would need large numbers of be working, so it is a substitute for imports of many foreign imports and revive the national economy and the risk away from the economy and budgets.

Live budget crises

And expert opinion that the budget Iraqi lives crises large, the first operational, and constitute more than 70 percent of the general budget, and the second relies on oil revenues, noting that Iraq was unable to over 10 years ago and despite the growing imports of diversification of the economy, so it has to be thinking about find other ways to finance the budget and raise GDP by other sectors, where imports constitute the industry for at least 15-20 percent, and agriculture more than 25 percent, and the tourism is not less than 10 percent.

New agreements

In turn, said the spokesman of the Oil Ministry, Assem Jihad (morning) that Iraq had plans to hold conventions for the storage of crude oil in several Asian countries, including India, China and Japan.

As oil prices continue in the global markets exceed the $ 110 per barrel, the government expects that these prices will remain above $ 100 for the medium-term future.

The Secretary-General of the Council of Ministers on the Keywords in a press statement: "The Iraqi government derives its information on the prices of oil from OPEC, which provides forecasts and insights near and medium term," he said, adding that it (the organization) depend on their expectations on the principle of supply and demand in the global markets, as that oil prices may go up or down, but it would maintain its survival above $ 100 per barrel for the next medium.

Sovereign fund

While stressing economic expert Falah Hassan Alwan, in a press statement that the increase in global oil prices would be reflected in the budget for Iraq Federal and therefore it will raise the level of investment projects and service to the country, calling on the authorities to create a sovereign fund of funds surplus derived from oil imports to finance Many development projects and investment that can not budget for funding.

An increase in exports

It is said that oil exports have risen since the beginning of last August about 220 thousand barrels per day compared with last July as a result of increased flows from the southern ports, after the allocation of the Iraqi State Oil Marketing Company (SOMO) of additional quantities of crude to some buyers, according to trade sources.


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