[size=52]The war in Ukraine changed the price of oil in the budget to $ 70[/size]
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Baghdad: Shaima Rashid
The repercussions of the Russian-Ukrainian war are expected to force Iraq to change its future economic plans, and may push it to develop its capabilities to benefit from the gas crisis and secure wheat grains.
The war and the subsequent rise in oil prices, dispelled fears about the fiscal deficit the country is witnessing, and overthrew the prospects of a stable price of a barrel of oil in the 2022 budget at $50 a barrel.
In this context, the economic advisor to the Prime Minister, Mazhar Muhammad Salih, explained that the Russian-Ukrainian war opened the opportunity for Iraq to develop its industrial and agricultural sectors, indicating that Iraq has two opportunities, the first of which is to benefit from the positive returns of high oil prices in developing its investment, and the second is that the gas and grain crisis must It drives us to develop our own potential.
Saleh added that the war today in the world is not far from Iraq, and it has positive effects that are in the financial interest of Iraq, due to the rise in oil revenues, in addition to the fact that OPEC may lift restrictions on the export of oil due to a lack of energy, adding that, in return, there are negative effects in Iraq. Who relies on imports to secure its food, especially grains, which rose by 30 percent.
Saleh considered this war a "historic opportunity", and the government should examine the possibility of what can be produced through high oil prices and harnessed for the benefit of the country's economic growth, noting that Iraq is at a break-even point from these effects, but the benefits will be greater if the economic and administrative and financial matters are studied in an appropriate way. correct.
Saleh expected that the price of a barrel of oil in this year's budget will change in 2022 and may reach 70, according to government estimates, calling for encouraging agriculture in order to secure grain and reduce imports.
The economic advisor to the Prime Minister stressed the need to start paying attention to the infrastructure of the energy sector, especially gas, and the development of associated gas and natural gas, saying: It is time for the government to act decisively and give priority to this sector.
The global benchmark Brent crude prices jumped during trading yesterday, Thursday, to levels near $120 a barrel, with a strong increase close to $7 a barrel.
The price of US West Texas Intermediate crude, on Thursday, exceeded $ 115 per barrel, a record since 2008, driven by the Russian invasion of Ukraine, which entered its week.
• Editing: Abdulrahman Ibrahim
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