He put forward a single reason .. An expert expects the reluctance of international companies to buy Iraq’s oil after March 2021
1,850 Economy 01/18/2021 18:49
Baghdad today - Baghdad
The economic expert, Ali Al-Freiji, said that Iraq will face a new problem related to the reluctance of international companies to buy its oil, due to fear of the instability of the global financial situation in what was considered the 2021 budget as the budget of political agreements.
Al-Freiji said, in a comment on the course of the dialogue regarding the federal budget, that "the government has worked to send a budget with high expenditures, in order to ensure that a specific number is reached at least that is similar to the sums included in previous budgets, with regard to government spending."
He continued, "In practice, the budget currently being discussed by Parliament is a budget for political agreements, and not a budget based on specific economic goals."
He added, "Also, the budget included failures related to setting open ends for what the Kurdistan region is working on from exporting about 250 thousand barrels of oil per day, without there being any agreement on the revenues obtained from export operations."
He pointed out that "the budget also included allowing the Ministry of Finance to take open loans, and this is contrary to the Financial Management Law in Iraq."
He continued, "The increase in oil prices in global markets came after Saudi Arabia reduced oil production by about one million barrels per day, and this matter will be followed by reluctance to buy oil from Iraq, as international markets and companies have a fear of the second quarter of 2021, and what follows, and this is what An additional economic problem in Iraq also threatens a country that depends entirely on selling oil to meet its needs.
The Minister of Oil, Ihssan Abdul Jabbar, confirmed, earlier, that the expected increase in oil prices will reduce the fiscal deficit in the budget and meet the petrodollar requirements of the eligible provinces.
Abdul Jabbar said, in a televised statement, that "the expected increase in oil prices, based on current indicators, and our view of the market, indicates a future rise in prices," noting that
"the increase that will occur will go to reducing the deficit in the financial budget."
He added that "the increase will also go to meet the requirements of the provinces of petrodollars, especially Basra Governorate."
He pointed out that "the Kurdistan region exports oil at a price lower than the market, ten dollars, and these are losses on the national economy," pointing out that
"the debts on the Ministry of Electricity may reach 10 trillion."