Advisor Al-Kazemi talks about the importance of the high price of oil and the expected impacts on the budget
1,293 Corona news 2021/03/07 23:44
Baghdad Today- Follow up
Mazhar Muhammad Salih, Financial Adviser to the Prime Minister, Mustafa Al-Kazemi, confirmed, Sunday, March 07, 2021, that the high oil prices will reduce the size of the deficit in the 2021 budget.
In a press statement followed by (Baghdad Today), Saleh said, "In the event that oil prices rise to $70, the size of the deficit in the budget will be reduced and the government will not be able to borrow any potential, provided that it continues throughout the whole year and not a day or two."
He added that "the trends of the oil market in the world at a moment of breakthrough due to the increase in Corona virus vaccines, which increases the demand for oil in global markets."
Oil prices continue to record gains after the decision of the "OPEC +" group to keep production cuts unchanged until the end of next April.
US crude futures rose 3.46% ($2.21) to $66.04 a barrel.
Brent crude futures rose 3.61% ($2.41) to $69.15 a barrel, according to Bloomberg data.
The countries of the "OPEC +" group had agreed last Thursday to keep production unchanged until the end of next April, and said that the recovery in demand from the Corona virus pandemic is still fragile.