Abrihi warns of the risks of continued low oil prices

8/26/2015 0:00

BAGHDAD Shokran Fatlawi

It holds a significant decline in oil prices, negative impact on the federal budget being entirely dependent on oil revenues, which fell remarkably, reaching to below $ 44.26 a barrel amid a global glut in supply, according to economist d. Ahmed Abrihi.

Abrihi He added that the measures taken by the government did not collapse after the recent oil price, which had been expected to take other measures such as work to create and review government spending once again the fact that alternative sources recent collapse calls attention to the possibility of a continued decline changed that.

And between d. Ahmed said 99 percent of Iraq's exports of oil are calling on the importance of expansion in non-oil productive base to face the crisis and to Ayazdad annual expenditure of the government for 6 percent to maintain the sustainability rate.

Financial challenges

The Followers see economic affairs that oil-exporting countries and falling revenues with lower prices will face financial challenges as far as the degree of dependence on oil revenues to finance public budgets in what would be the biggest beneficiary of the drop in oil importing countries prices, such as China, India and the United States and the euro.

Followers believe that some countries may not face financial problems in the short term because of the possession of a good financial Ahitatat, financial assets that could be sold to cover the deficit in the budget.

As this will be a decline in oil prices challenge to other countries, including Iraq and, being one of the countries that rely on oil revenues, mainly as a source of income at the same time fighting.

A fierce war against the barbaric attack of the hardest to organize terrorist Daash several months ago what the state treasury holds a significant financial burden.

Disturbance conditions

And between Followers of economic affairs that was usual that oil prices are adversely affected by circumstances and security threats in the Middle East, where oil prices rise with the conditions of the region disorder Mstdrickan what we are seeing today is just the opposite, as the Iraq, a large oil exporter, is witnessing wars, however it collapsed oil prices.

The oil prices have fallen sharply to their lowest levels six and a half years ago in what was then producing countries or exported to him and including Iraq, prompting the government to follow the policy of austerity, according to economists.