Sunday, October 17, 2021 9:43 AM
Baghdad/National News Center
Today, Sunday, Adviser to the Prime Minister for Economic Affairs, Mazhar Muhammad Salih, revealed the reasons and factors for the rise in oil prices.
Saleh said in a press statement, "The rise in crude oil prices is subject to three factors; The first is the price averages over the course of the fiscal year, the second is the exported quantities, and the third factor is a hedge against the fluctuations of the oil market because the asset cycle in it is fraught with risks.
And he indicated that, according to the enforceable (Financial Management Law), which urges the adoption of an average price per barrel of oil for the purposes of calculating the budget in a rational manner and oil revenues.
Saleh pointed out : " the general budget of the Republic of Iraq are designed to lower than the market price of oil prices and generate a probabilistic deficit or default surrounded by a financial bumper shall assemble oil revenues that exceed the price of a barrel of oil specified in the budget to feed expenses without resorting to borrowing in the event that the deficit actually."
He pointed out that "the problem with the budget is always (non-oil) revenues that do not reach the ceiling of the targeted expectations."
And he stated, “If we expect, for example, (50 dollars) as a barrel price for next year’s budget 2022, then we must get an average annual return from oil exports, with the export of more than three million barrels, with an average annual surplus price of less than 75 dollars. Because of the rise in the average price of a barrel to more than 75 dollars as an annual average during the fiscal year, it must be employed for the investment budget and the operation of projects in the subsequent budget 2023.”
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