Experts call for the establishment of strategic oil windfall projects

by **rocky** Wed 14 Dec 2016, 6:38 am

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Experts call for the establishment of strategic oil windfall projects

by rocky Wed 14 Dec 2016, 6:38 am

Experts call for the establishment of strategic oil windfall projects


Experts call for the establishment of strategic oil windfall projects

Economy News / Baghdad ... After discussions and meetings marathon witnessed by the member states of the Organization of Petroleum Exporting Countries (OPEC), with countries from outside, which yielded positive results, expressed Economists Iraqi optimism, the historic agreement that may bring additional financial gains to Iraq to support the economy. This comes at a time, they called to the importance of investment and abundant revenues in the strategic national projects to support the productive sectors in the country, and that will contribute to move the economic cycle and to achieve real sustainable development over the coming years, especially with the volatility of crude oil prices in world markets. The latest agreement Member of the Baghdad Economic Forum Jassim Al Aradi said: "The recent agreement of the producers included in the important field and expected, after reaching the negative effects to the scary limits to most countries, especially those that rely on fiscal revenue to cover their own countries the expenses." He noted that "the recent agreement leads in all cases to raise oil prices in world markets, calling for the need that all oil-producing countries in the quantities specified committed to reach an acceptable price for the parties concerned producers and consumers." He pointed out that the challenges of determining output and expectations aimed at that will lead to the development of bemused in some producing countries, which have a development agreements oil fields that adhere to contracts in this area which may enter new problems that could lead to re-oil agreements that lead to the result of fines financial obligations penalty for violation of the terms of Contract. Financial distress The specialist in economic affairs Mahmoud Mehdi Hassoun has said, "that the higher oil prices lead to the withdrawal of Iraq from financial distress circle, moving to a better stage, noting that the best solution, which must be adopted by Iraq in the coming period is planning to build manufacturing industries invest crude oil and turn to different products needed by the local market and global markets and raise the value of crude oil to the highest degree of economic viability of the country check the levels. " He urged Hassoun, "the need to communicate with international companies that have worked with Iraq over the past decades to build manufacturing industries in the oil producing areas that can be described the current time job experience. He stressed that "derived through financial abundance resulting from oil price difference compared with the price fixed by the general federal budget and the $ 42 must be employed in strategic projects implementation will begin quickly and this requires specialized committees for planning and implementation of field and follow-up by the Integrity Commission and the Council of Ministers and committees Other the reality of spending allocations sequence to create real projects contribute to implementing the real private sector. " Determine prices As oil affairs specialist Mustafa Basri described the latest agreement as significant and which has kept the (OPEC) from disintegration, which was threatening its existence, and saw that this historic decision is up to them to determine the possibility of moving in crude oil prices in the global market.Basri said: "The fear of a glut in the global markets due to the abundance of shale oil production is limited because of the high cost of production in this type of oil. The experience of the oil wells, drilling rigs in the United States fluctuated in preparation between now and then, and this affects in oil prices slightly. With the signing of the agreement after nearly a year of controversy within the Organization of Petroleum exporting countries (OPEC) and the lack of confidence in the desire of Russia is not a member of the organization to participate now turn attention to the producers commitment to the agreement. To that Iranian Oil Minister Bijan Zanganeh said on Tuesday: It is likely that oil prices will stabilize in a range between $ 50 and $ 55 a barrel, indicating that the market reaction to the agreement (OPEC), the latter on the Reduction of production was Positive. The newspaper quoted sources Zanganeh as saying: "All indications suggest that oil prices will rise is difficult to predict, but certainly I can say that prices will stabilize between $ 50 and $ 55 a barrel." Zanganeh's remarks came after a meeting with his Russian counterpart Alexander Novak. He said that Iran will put the finishing touches on the agreement in two days for the sale of 100 thousand barrels per day of crude oil to Russia. Oversupply Oil prices jumped to their highest levels since mid-2015 after it reached "OPEC" Producers and others to the first agreement since the year 2001 as a joint to reduce production in order to curb oversupply and support Markets. However, the prices back down slightly on Tuesday, where he scored World London Brent crude 55.65 dollars a barrel in overseas trading, a decline of four cents from the previous close, while futures for WTI fell US mediator eight cents to $ 52.75 a barrel in light of the lack of participation US producers to cut production. The expert said Goldman Sachs: "We believe that the commitment of 11 members of the (OPEC) and 11 products from outside the organization to cut production is necessary to continue to support oil prices up to our expectations for the price of crude (West Texas) American mediator in the first half of 2017 at $ 55 a barrel ". He continued, "This expectation reflects the actual cut of one million barrels per day compared to the declared value of the cut 1.6 million barrels per day, so the stated commitment to the larger cuts represents a risk to the upside Our expectations. " A barrel of oil Amid these data, predicted expert Rahim Al Shammari higher selling a barrel of crude oil prices globally during the first quarter of next year. Al-Shammari said: If you committed (OPEC) and the 11 countries outside the Organization reduction, prices may range between 60 - 65 dollars per barrel (Brent) and 55 - $ 60 from the basket of crudes (OPEC). The Al-Shammari said "the importance of the agreements (OPEC, and beyond) and Anekasathma on the global oil market, as Staidan market stability," and urged "the Iraqi government to benefit from the recovery in the markets after the two agreements and reduce the fiscal deficit for the budget year 2017". The obligation of States In turn, he saw oil expert Aqil al-Saadi said "the commitment of States 22 reduction is the most prominent challenges." But al-Saadi were upbeat about it, saying: "The data confirm the commitment of the major countries such as Russia, Saudi Arabia, Iraq and Kuwait reduction, and this will be reflected positively on the market." Saadi said: "The price of 50 - $ 55 for the OPEC basket is a good thing for Iraq as a first step." He stressed "the importance of investing this line upward trend of oil prices in addressing the financial gap (deficit) and revive the Iraqi economy and directing the surplus from the sale of oil money to support capital projects." It is said that the government price of $ 42 for a barrel of crude oil was adopted during the next budget year 2017, which means that if the price of oil continued to rise will save money Huge. On the other hand exhorted economic member of the Baghdad forum Jaafar Yassin government on the development of oil and manufacturing industries in the country to the presence of infrastructures her, what supports the general budget of the country, without the total oil revenue dependence, especially as the price of crude oil saw a sharp fluctuation in the global market. He said Yassin, said that "Iraq has the ingredients of oil and manufacturing industries in which it is possible to witness a global high turnout, especially in light of the growing demand for its entry in a major key industries in the world, as well as fill a need of national industries of raw materials without the need to Astaraha and oust foreign currency out of Iraq. " http://economy-news.net/content.php?id=6094