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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

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    An economist identifies 7 “negative” effects of high oil prices on Iraq

    Rocky
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    An economist identifies 7 “negative” effects of high oil prices on Iraq Empty An economist identifies 7 “negative” effects of high oil prices on Iraq

    Post by Rocky Thu 03 Mar 2022, 6:06 am

    [size=30]An economist identifies 7 “negative” effects of high oil prices on Iraq
    [ltr]2022.03.03 - 10:53[/ltr]
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    On Thursday, an economist monitored the "negative" effects of high oil prices on Iraq, including undermining economic reform, as well as significantly increasing public expenditures.  
      
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    The professor of economics at the University of Basra, Nabil Al-Marsoumi, said in a blog post followed by "Nass" (March 3, 2022), that "it is possible to look at oil prices without the positive angle represented by the rise in oil revenues, which is positively reflected on the public budget, economic growth and investment, through Looking at the disadvantages of high oil prices on Iraq, which are as follows:  
      
    1 The increase in the prices of oil derivatives, which currently amount to about 3 billion dollars annually, in addition to the increase in smuggling of oil derivatives due to the large gap between the price of subsidized fuel and its price in the global market.  
      
    2 The increase in the prices of imported Iranian gas, which is linked to a price equation, one of which is the price of oil.  
      
    3 The possibility of a rise in the imported electricity bill due to the high prices of gas used as fuel to produce electricity.  
      
    4 The high prices of imported goods, especially food and petrochemicals, due to the high prices of oil, which is used as fuel and as a raw material in many industries, as well as the high prices of local products, most of which use imported production requirements.  
      
    5 High liquidity will lead to speculation and a significant increase in assets, especially real estate.  
      
    6 Undermining economic reform, as high oil prices weaken the incentive to reform the Iraqi economy and transform it from a rentier economy to a diversified one.  
      
    7 Significantly increasing public expenditures will result in a permanent increase in future burdens on public budgets in the coming years, especially when oil prices decline later.  
      
    Earlier, Al-Marsoumi said, in a blog post followed by “Nass” (March 2, 2022), that “after the OPEC + decision to maintain the monthly increases of 400,000 barrels per day, Iraq will raise Iraq’s production share to 4.414 million barrels per day in April, an increase of 44 thousand barrels per day for the month of March.    
      
    He added, "However, Iraq will not be able to produce this amount of oil due to the suspension of work in the Nasiriyah field, which currently produces 80,000 barrels per day, and maintenance work in the West Qurna 2 field, which currently produces 400,000 barrels per day, which will stop production within two or three weeks." the first of this March.    
      
    The OPEC secretariat confirmed that the countries of the "OPEC +" group agreed to increase oil production by 400,000 barrels per day in April 2022.  
      
    According to a statement published on the official website of the OPEC Secretariat, half of this increase (400,000 barrels per day) will come from Russia and Saudi Arabia, the two largest oil producers participating in the “OPEC +” agreement.    
      
    Next month, Russia and Saudi Arabia will be able to increase their production by 105,000 barrels per day each, to 10.436 million barrels per day.    
      
    The decision came based on a meeting held by the “OPEC +” group, and it is planned that the group will hold its next meeting on March 31 to discuss the production plan for the month of May 2022.     
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