Specialists: Rising oil prices herald an explosive budget

[size=52]Specialists: Rising oil prices herald an explosive budget[/size]

[size=45]Baghdad / Hussein Hatem[/size]
[size=45]Economic experts considered the rise in oil prices an “opportunity” to approve an “explosive budget” during the year 2022.[/size]
[size=45]Oil prices have risen since the beginning of this year to unprecedented levels since 2014, as prices fluctuated between $90 and $93 a barrel.[/size]
[size=45]Oil prices jumped on Wednesday, after two sessions of losses, as industry data showed an unexpected drop in US crude and fuel stocks.[/size]
[size=45]Brent crude futures rose 41 cents, or 0.5 percent, to $91.19 a barrel by 04:22 GMT, while US West Texas Intermediate crude recorded $89.74 a barrel, up 38 cents, or 0.4 percent.[/size]
[size=45]US crude, gasoline and distillate stocks fell last week, according to market sources citing figures from the American Petroleum Institute on Tuesday. Crude oil stocks fell by 2 million barrels, according to the American Petroleum Institute.[/size]
[size=45]Oil prices near $100 a barrel could attract more production from the United States. The Energy Information Administration expects US crude production to rise from 770,000 barrels per day to 11.97 million barrels per day.[/size]
[size=45]And economic affairs specialist Diaa Al-Mohsen believes that “there is a significant increase in the demand for oil quantities, which will explode the 2022 budget to 140 billion dollars in oil imports if the price of a barrel of oil is set at 70 dollars,” noting that “the price of 70 dollars per barrel is the best price to protect the budget.” .[/size]
[size=45]Al-Mohsen added that "there are also 50 billion dollars in non-oil resources from taxes, tourism and customs, in addition to the rest of the high price of a barrel of oil estimated in the budget, which means that the next budget will be an explosive amount of 190 billion dollars."[/size]
[size=45]And he indicated that "there is a financial abundance that will be in the next budget in view of the price of oil," adding, "But the problem lies in the financial legislator, is he able to manage investment projects and provide job grades."[/size]
[size=45]For his part, the adviser to the Association of Iraqi Banks, Samir Al-Nusairi, believes that “oil prices exceed the $90 barrier, which will strengthen the government’s financial position,” expecting “prices to reach above $100 per barrel.”[/size]
[size=45]Al-Nusairi continued, "The rise in oil prices will, in turn, cancel the deficit in the 2022 budget, or it may be a very small deficit."[/size]
[size=45]And the Iraqi Banks Association adviser demanded "the need to expedite the establishment of a sovereign fund (the Generation Fund) to protect the national economy in times of crisis or when prices drop."[/size]
[size=45]A sovereign wealth fund or sovereign funds is a fund owned by the state consisting of assets such as land, shares, bonds or other investment devices, and these funds can be described as entities that manage state surpluses for investment and are promised billions of dollars invested by states in stocks and bonds.[/size]
[size=45]Al-Nusairi called for "activating the productive sectors, including agriculture and industry, and not relying entirely on oil."[/size]
[size=45]For his part, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, said, "Oil prices reach what they are now, an opportunity to implement lagging projects and state investments."[/size]
[size=45]Saleh stressed, "The rise in the price of a barrel of oil enhances investment and gives a vision for the future," noting that "the government is in the process of creating a financing partnership with the private sector."[/size]
[size=45]The government advisor pointed out that "the rise in oil prices requires opening the budget to employment-generating and income-generating projects, whether from the state's investment budget or supporting private sector investment activities produced with soft loans from budget revenues."[/size]
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