Specialists: The rise in oil prices is an opportunity to set an exceptional budget

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[size=52]Specialists: The rise in oil prices is an opportunity to set an exceptional budget[/size]

[size=45]Oil prices have witnessed an unprecedented jump since 2011, as Brent crude recorded, yesterday, Wednesday, $114 a barrel, and West Texas Intermediate crude, which recorded $112 a barrel.[/size]
[size=45]Oil prices have jumped to unprecedented levels in recent years against the backdrop of the Russian-Ukrainian war.[/size]
[size=45]Pressures on the global oil market increased after reports that the members of the “OPEC Plus” alliance, which includes 13 member states in “OPEC” are heading to maintain a cautious increase in production.[/size]
[size=45]Experts in economic affairs believe that the rise in oil prices heralds an explosive budget for the year 2022, while stressing that it is time to go to balancing scenarios and strategic projects away from corruption and legitimacy. "The rise in oil prices heralds a budget for the year 2022," says economic specialist Diaa Al-Mohsen. 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 rise in the price of a barrel of oil estimated in the budget, which means that the next budget will be explosive by about 190 billion dollars."[/size]
[size=45]He added, "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 legislature. Is it able to manage investment projects and provide job grades?" In turn, the advisor of the Iraqi Banks Association, Samir Al-Nusairi, believes that “the oil prices exceed the 110-dollar barrier, which will strengthen the financial position of the government,” noting that “the rise in oil prices will, in turn, cancel the deficit in the 2022 budget, or it may be a very simple 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]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 expert in economic affairs, Nabil Al-Marsoumi, says, “The fear of supply disruptions as a result of the Russian-Ukrainian war, led to a rise in the price of oil in spot contracts to more than 113 dollars per barrel, despite the announcement by the International Energy Agency of a plan to pump 60 million dollars. A barrel of oil from emergency reserves, half of which are American, in order to stabilize markets.”[/size]
[size=45]Al-Marsoumi added, "The declared 60 million barrels represent 4% of the emergency reserves of the members of the International Energy Agency, which amount to 1.5 billion barrels. This announcement represents the fourth coordinated withdrawal of oil reserves in the history of the Energy Agency after the years 2011, 2005 and 1991."[/size]
[size=45]He continued, "However, prices will remain very high because they are related to geopolitical factors and not to economic factors, as a decrease in demand for Russian oil is observed due to the refusal of European banks to give bank guarantee letters to buyers of Russian oil."[/size]
[size=45]The specialist in economic affairs pointed out that the refineries carry out maintenance work, which is periodic maintenance that leads to a decrease in demand for oil. In addition, most of the stocks in European countries are oil products, not crude oil, and they will be in the markets quickly, and will not need refining, and then this will put pressure on prices in the coming days.” For his part, the economist, Mustafa Akram, says:[/size]
[size=45]“The huge amounts of oil imports can be exploited, unlike previous years, whose money went to legitimize economic corruption, through the use of budget items through which thousands of projects are added to the budget and disbursed for one year.” Akram added, "The nature of fluctuating oil prices leads in the following years to not achieving the same revenues, and therefore thousands of projects are neglected and thousands of projects are also deleted until many of the abandoned projects are accumulated."[/size]
[size=45]He pointed out, "The time has come to go to balancing strategic scenarios and projects, whereby funds are directed towards important programs and projects for the state."[/size]
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