Will global falling oil prices & demand impact Iraq's budget?

[Luigi1]

Iraq based it's 2012 budget on $85 bl oil. OPEC prices along with demand has fallen off sharply due to the global economic recession. There appears to be no change in the global recession outlook in near future. Could this de-rail the iraq economy & possibly delay the RV? What are your thoughts on this topic?

Herer's my view...

Iraq may have no choice but to go back to the drawing board & re-access it's bold expansion plans including the RV. This just goes to show how things can change by the hour, day, week, or month. Let's hope the RV will happen & jumpstart the global economies.

[Tropics]

I find it interesting that 5 years ago or around that time when a barrel of oil was $140, gas prices in california was over $4. Now that it is $78 a barrel, gas prices are $3.93 where I live. But if you ask the oil companies they aren't gouging but seemingly have record profits every year. If the markup per gallon of gas is the same, and the usage is down because of the recession, how can you have record profits?

[Luigi1]

I find it interesting that 5 years ago or around that time when a barrel of oil was $140, gas prices in california was over $4. Now that it is $78 a barrel, gas prices are $3.93 where I live. But if you ask the oil companies they aren't gouging but seemingly have record profits every year. If the markup per gallon of gas is the same, and the usage is down because of the recession, how can you have record profits?

There are no simple answers. Prices of just about everything are manipulated by the globalists in control. Supply & demand are out the window. Then factor in the speculators, hedge funders & insider traders. Price fixing on everything from gold & diamonds to oil are contolled & will always be controlled. Again, forget about the old rule of supply & demand.

Oil could drop to $1 a bl & you'll still be paying $4 at the pump.

[yota691]

IMHO Iraq budget is still not affected as of yet at $78 pb, with the first half of the year being way over $85 almost $100 or more daily!! The out right (actual) cost of a barrel of oil from Iraq stand point actually reflects the value of IQD!! Which we all know is minimal!!

[dinar_millions]

Vizioiraqi had a IMF REPORT that $3.22 +/- 20% rv was sustainable @ $35.00 a barrel...main reason oil so high is the fear mongering speculators

Edited June 22, 2012 by dinar_millions

[Luigi1]

IMHO Iraq budget is still not affected as of yet at $78 pb, with the first half of the year being way over $85 almost $100 or more daily!! The out right (actual) cost of a barrel of oil from Iraq stand point actually reflects the value of IQD!! Which we all know is minimal!!

Good point. At some time in near future when the global economy improves & demand goes up, oil prices will be back over $100 bl. It should average out over $85 in a five yr period.

[rockfl9]

They will make up the difference by printing more dinars .. It is more profitable than pumping oil.

[Luigi1]

They will make up the difference by printing more dinars .. It is more profitable than pumping oil.

Only one problem. That would put Iraq in the samre boat as the USA. It will have currency with nothing to back it up with should the oil markets fall.

Pumping more oil like the Saudis do to make up for falling costs will only make things worse by causing a even more glut of crude on the world markets.

[rockfl9]

As long as they can sell dinars for more than it costs to print NOT their problem...They would to buy them back CHEAP!

[Luigi1]

As long as they can sell dinars for more than it costs to print NOT their problem...They would to buy them back CHEAP!

Agree. You ever wonder why Iraq keeps on printing new 25K notes like there's no tomorrow? They probably had no intentions of ever covering the spread after the RV. Thus a LOP & a managed float to x3.5 may fit their needs much better & acheive the same results.

[rockfl9]

I think that when the new dinar gets on par with the dollar economic forces will restrain rate increases at least untill ALL the old dinar are exchanged out...I dont see 2X for a lomng time.

[tedro]

Vizioiraqi had a IMF REPORT that $3.22 +/- 20% rv was sustainable @ $35.00 a barrel...main reason oil so high is the fear mongering speculators

Not sure what you been smoking here, the price of oil is controlled by OPEC (Organization of Petroleum Exporting Countries)..........when I was in College in the early 70"s there were "gasoline wars" (gasoline comes from refining oil) on a good day one could buy gas in Texas for 10 cents/gal.....then OPEC was formed, Countries like Saudi Arabia as OPEC members cut back the flow of oil exported, prices jumped extremely high (so did gas prices in turn) when OPEC turns the flow of oil ON the price of oil drops.........trust me on this, fear mongering/speculators are not the reason for high oil prices..........supply and demand are the key words...........basically OPEC cuts BACK the flow of oil, prices go up, OPEC opens UP the flow of oil, prices decline. Sorry, my disertation here is not entirely related to the price and/or progress of our RV...and I apologize if I insulted anyone's intelligence. Also, I do not live on Oklahoma, not related to Okie Oil Man and do not know who he is for real, nor do I believe his BS.

[GasCan]

Not sure what you been smoking here, the price of oil is controlled by OPEC (Organization of Petroleum Exporting Countries)..........when I was in College in the early 70"s there were "gasoline wars" (gasoline comes from refining oil) on a good day one could buy gas in Texas for 10 cents/gal.....then OPEC was formed, Countries like Saudi Arabia as OPEC members cut back the flow of oil exported, prices jumped extremely high (so did gas prices in turn) when OPEC turns the flow of oil ON the price of oil drops.........trust me on this, fear mongering/speculators are not the reason for high oil prices..........supply and demand are the key words...........basically OPEC cuts BACK the flow of oil, prices go up, OPEC opens UP the flow of oil, prices decline. Sorry, my disertation here is not entirely related to the price and/or progress of our RV...and I apologize if I insulted anyone's intelligence. Also, I do not live on Oklahoma, not related to Okie Oil Man and do not know who he is for real, nor do I believe his BS.

Well buddy I believe you are the one that has been misinformed. It may have been that way in the 70's but that's not the case anymore. Anything over 35 bucks in early 2000 was making a profit and it's not far off that mark today. Gas prices are controlled by money hungry individuals on the oil company’s payroll. The excuses for them being so are ridiculous.

[capt.cliff]

Well I am going to try this one more time before I get booted again

while we see thr price of oil falling basicly it has nothing to do with to the quality of oil and the cost of extracting out of the ground--the ligther sweeter the crude coming out of the ground the more higher price is commanded--for instance Basra light sweet crude[less sulpher] --requires less refineing --like Texas light sweet crude--just an example--- now the Iraqis just raised the price of this crude--- I do believe their budget has not been impacted one IOTA by the fall of WORLD PRICES---they more than enough resources to take care of any short fall in the world market on and level --meaning of grade of oil and price--these camel jockeys while many have called still have not even learned about being in the catbird seat---just like most here don't understand that the price oil is only an avergage, not who has the best of the best---do not forget NG either

Just one of my random thoughts