Invitations to invest high oil prices revive the productive sectors
17/1/2018 12:00 am
And reached $70
Baghdad / Hussein Thaghb Mustafa al-Hashemi
The voices calling for the investment of rising crude oil prices in the world markets in the direction that benefits the Iraqi economy and accelerate the development process sought by the country amid the availability of the most important elements of success and achievement Objectives.
The economic expert Bassem Jameel Antoine said: "Iraq has productive sectors semi-disabled need to capital to recycle the production cycle again, and contribute to the process of economic development,"
pointing out that the financial savings resulting from the difference in oil prices approved in the budget and prices in global markets Can be used to activate the productive sectors, and this is a new opportunity to work on reviving the sectors of industry and agriculture to other sectors of income-generating."
Building an economy
Antoine said in an interview for "morning": "The oil prices will be at acceptable levels of all producing countries and the beginning, and this enables the rent countries to start work on the development of their productive sectors and achieve a real multiplicity in financial revenues, especially Iraq, which has the capacity to enable Building an effective economy at the regional level And international."
Brent crude prices rose to $70 a barrel on Monday, supported by continuing OPEC-Russia production cuts and ignoring the increase in US and Canadian drilling activities, predicting future production growth in North America. Brent crude futures were up 13 cents from the previous close to $70 a barrel.
US crude oil futures rose 23 cents to $64.53 a barrel, with crude reaching last week's record high of $70.05 a barrel and West Texas Intermediate at $64.77 last week.
ANZ Bank said oil prices have been rising recently, with data showing a narrowing of the supply-demand gap market.
Oil markets are well supported by production cuts led by the Organization of the Petroleum Exporting Countries (OPEC) and Russia, which aim to raise crude prices.
"The rise in oil prices allows this period, if it continues at rates above $70, to provide a sovereign wealth fund that will guarantee the rights of future generations to enjoy it, as well as the fact that this fund will support Iraq's economy," said Haidar Kazem al-Baghdadi.
Very much in financing all infrastructure projects at the moment."
The Sovereign Wealth Fund or Sovereign Funds is a government-owned fund consisting of assets such as land, shares, bonds or other investment instruments.
These funds may be described as entities that manage state surpluses for Investment.
"Sovereign funds are not a new phenomenon, some of them date back to 1953, as the first sovereign fund in the world was created by the State of Kuwait," Kazem al-Baghdadi said.
"These funds in the financial sector alone have holdings in giant corporations like Morgan Stanley, Bear Stern, Merrill Lynch, Sunset and UBS".
Iraq has adopted in its budget for 2018 price of $43 per barrel, which will enable him to achieve a material surplus can be employed in the direct deposit in the sovereign wealth fund for the development of productive sectors and financing infrastructure projects.
Oil revenues are the main source of funds for the world's largest sovereign wealth funds. In conjunction with the rise in oil prices and the increase in imports of oil producing countries, the wealth of these funds has increased. Also.