Warning of economic disaster as a result of the continued decline in oil prices

Posted 01/07/2012 08:32 AM

Babinaoz (Reuters) - Member of the Committee warned that oil and energy parliamentary Susan Saad government from economic disaster the country has suffered as a result of continued low oil prices in world markets and especially that he is the sole supplier of the general budget of the state.

Saad said, according to a statement that "dependence on oil as a source basis to run the country economically is very dangerous especially that any fluctuation in prices going forward will reflect on the state, which live off them all the sons of the people." MP Saad and called for the province of Basra, the concerned authorities in this regard and to make plans of new economic mechanisms and the Court held intensive meetings to avoid the negative effects that would ensue from this decline. "

She added that "Iraq's budget identified on the energy of the oil export by 2.6 million barrels, at $ 85 per barrel, but the proportion of export and after six months have not reached the decision, accompanied by a decrease oil prices in global markets." The selling prices of oil in global markets have seen a significant decline represents a drop price of a barrel toward $ 30 within a period of three months, where they settled on $ 97. The government approved the fifth of December last budget year 2012 amounting to $ 100 billion [about 117 trillion Iraqi dinars] and a deficit of up to $ 13.5 billion [about 17 trillion dinars. According to one of the terms of Iraq's budget public in 2012 that "if the high price of oil to more than $ 85 a barrel, the amount of surplus of the budget is distributed to citizens, but the Ministry of Finance confirmed then that the value of the deficit and the surplus will appear a month later in June last