Expert warns of high default budget deficit after falling oil prices

Hamza Al-Jawahiri

Economy News Baghdad

The oil expert, Hamza al-Jawahiri, warned of the increase of the budget deficit to more than $ 22 billion, stressing the need to review the budget for 2019 and reduce the price of a barrel of oil to $ 40.

Brent oil prices fell last Friday to $ 59.31 per barrel.

Al-Jawahiri said in an interview with “Economy News” that Iraq will be strongly affected by the decline in oil prices because its budgets depend heavily on it, and thus increase the budget deficit.

“We advised them to calculate the price of a barrel of crude oil in the budget at $ 40,” he said, referring to US manipulation of oil prices through “public pressure” on Saudi Arabia and the Gulf states to increase supply and “oil saturation” in the oil markets.

Al-Jawahri stressed the importance of conducting a comprehensive review of the 2019 budget and reducing the price of a barrel of oil to $ 40.

He said the United States contributed more than $ 10 to the price of Brent and Texas crude by pumping more than 100 million barrels of its strategic stockpiles.

The oil expert pointed out that Iran increased its oil exports after the US sanctions as it exported 2.6 million barrels per day and now increased by one hundred thousand barrels from the previous ratio, especially after the import exemptions received by eight countries.

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