Tishwash: Economist: Iraq needs $ 66 a barrel and resorting to currency reserves is a disaster
The economic expert, Ali Al-Fariji, stressed the need for Iraq to price 66 dollars per barrel out of the economic crisis, while warning against resorting to currency reserves.
“The average price per barrel of $ 39 is expected to be at the end of the year or in the first quarter of 2021,” al-Furaiji said, noting that “Iraq is linked to the OPEC agreement to reduce one million barrels per day, so we will face two problems in fluctuating price per barrel with The estimate imposed on Iraq is to face the same operational budget and the same numbers for years. ”
He added, “In the sense that the exchange rates in the government will be very large against a deficit in oil revenues because the price per barrel of oil is 34 dollars and Iraq needs from 62 to 66 the price of a barrel to meet the budget if compared to the 2019 budget, so it will be more than 55% deficit in the price of a barrel.”
Al-Furaiji pointed out that “the financial crisis in the country depends on the type of plan or strategy and the urgent need for the prime minister’s attention on the team leading this crisis; but if we rely on the same minds that caused the disaster and the economic crisis, we will fall into a quagmire that is suppressed than we are.”
He also stressed “the need for Iraq to have very exceptional minds and experienced expertise worldwide to lead economic construction in a manner that differs in the nucleus of the crisis.”
The economist warned against “resorting to the state’s treasury,” returning him “a catastrophe and a depletion of the country’s energy,” explaining that “Iraq possesses an average of 60 billion dollars, 30 billion of which is in bonds, therefore there is a limit allowed by the state that can be dealt with and almost according to decisions from 9″ To 11 billion dollars. ”
He noted at the conclusion of his speech that “if the deal exceeds this figure is too big glitch will happen in the economic structure of Iraq”, warning the government of “special operations leveraged and Iraq are currently subject to $ 80 billion in debt negative” link
Tishwash: Bloomberg: Oil is rising and Iraq has implemented less than half of the agreed cuts
The US Bloomberg Agency announced on Tuesday that oil prices have started to rise gradually with the OPEC + decision to reduce production, indicating that Iraq has implemented less than half of the agreed upon.
According to the agency that said it “conducted a survey, OPEC + implemented about three quarters of the cuts that were promised in May, but Iraq And Nigeria They have carried out just less than half of the agreed cuts. ”
A Saudi delegate said, “Saudi Arabia prefers to keep the restrictions that are scheduled to begin to reduce July in place for one to three additional months.”
Any changes to the agreement will be discontinued OPEC + On negotiations between Moscow And Riyadh , Where she said Russia Last week, she wanted to start ending cuts next month.
Quotes Bloomberg according to A fan of mine The economist at OPEC + Saying if he can OPEC + “Agreement on a three-month extension to reduce current production, as there is a real possibility that the market may shift from a sharp oil glut this quarter to a shortfall in supply in the third quarter,” adding that this would help Brent pay about $ 40 a barrel.
At ten o’clock Baghdad time, West Texas Intermediate crude oil, July’s load, rose 0.26% to $ 35.70 a barrel on the New York Mercantile Exchange, and Brent crude, August’s 1% load, rose to $ 38.69 on the European Futures Exchange after rising 1.3% on Monday. link