13 hours ago
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The Parliamentary Oil Committee warned of the repercussions of the continued decline in world oil prices on the volume of financial revenues for Iraq, while noting the possibility of canceling some investment projects due to the size of the deficit.
A member of the committee, Bassem Al-Gharibawi, said in a press interview seen by Taqaddam, “The Oil Committee, since the government announced the details of the 2023 budget, has warned it against adopting the price of a barrel of oil in the budget at a value of $70 per barrel, and it was more appropriate to adopt realistic prices ranging between 60-65.” Dollars per barrel, given that oil prices are subject to rise and fall, as a result of variable events in the world, most notably the Russian-Ukrainian war, which cast a shadow on oil prices greatly.
And Al-Gharibawi added, "Oil prices may witness a decline during the coming period, especially if calm prevails on both sides of the war conflict between Russia and Ukraine, which in turn will make global prices fall under the category of decline."
He added, "The continued decline in global oil prices will lead to an increase in the budget deficit rate, which amounts to 64 trillion dinars," pointing out that "the government has set its financial accounts according to the aforementioned deficit rate, which means that any drop in oil prices will lead to (confusion) in the work program." Government and financial allocations to ministries and provinces.
Al-Gharibawi added, "Russia's continuation in keeping the rate of its exports as it is without adhering to the decision to cut production from OPEC + will lead to a continued decline in prices, and this is what is expected, which may push Iraq to reduce the investment budget in the event that prices continue to decline," indicating That “the drop of one dollar in global oil prices will be reflected in the budget in a very large way and change a lot of things.”
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