Three proposals to take advantage of high oil prices

[6ly410]

Three proposals to take advantage of high oil prices

Monday 07 February 2022  

https://alsabaah.iq/60604/ثلاثة-مقترحات-لاستغلال-ارتفاع-أسعار-النفط

 

 Baghdad: Haider Falih Al-Rubaie 

The financial advisor to the Prime Minister, Dr. Mazhar Muhammad Salih, suggested three axes to benefit from the financial abundance achieved as a result of the rise in oil revenues, whose prices exceeded the $90 barrier, putting at the forefront of those proposals, allocating part of those revenues to raise the efficiency of operating investment projects, and to move towards Activating major agricultural licensing rounds, to mobilize this sector, which can support the country's financial budgets and provide the requirements of the local market, while he pointed out that the third proposal is to establish a budget stabilization fund that addresses external shocks to which international finances are exposed.

 

At a time when the Ministry of Oil expected that Iraq’s production would rise to more than 4 million barrels per day in next March, the economist, Dr. Bilal Al-Khalifa, believes that the fair price of oil serves everyone, and this increase will leave behind many increases in prices and costs worldwide, and as We noticed last year when inflation reached 22% in the world.

 

Three scenarios 

Saleh indicated during his speech to “Al-Sabah” that, “Achieving financial sustainability is linked to the condition that oil prices remain above the rate of 72-75 dollars per barrel for a period of no less than three fiscal years, pointing out that there are three main axes to benefit from the rise in oil prices averages (to the level of budget balance). In light of the current annual spending ceilings, especially the operational limits that have reached their maximum limits in operating the public service in the country), the first axis is to raise the efficiency of operating government and private investment projects to achieve the growth goal approved by the ten-year national sustainable development period. 

coming.

  

Agricultural Tours 

The government advisor explained that the second axis aimed at benefiting from the financial abundance achieved as a result of the high oil prices, is related to generating a partnership of oil surpluses with the private sector to conduct major agricultural licensing rounds and promote the associated industrial and service activities, noting that the third proposal includes the establishment of a budget stabilization fund whose function is to address To the external shocks to which international finance is exposed to fluctuations and surprises in the energy markets in order to sustain spending on income-generating investment projects that operate without interruption.

Saleh stressed that achieving the "triple strategy" he referred to is an objective basis for launching development on a basis of high stability and low risk.

 

production ceilings 

For his part, the economic expert, Dr. Bilal Al-Khalifa, explained during his speech to “Al-Sabah” that “Iraq is one of the members of the Organization of Petroleum Exporting Countries and its allies, and therefore it is restricted by the production ceilings set by the organization (OPEC Plus), but it is a good tracker of oil affairs and global monthly bulletins. , it will be noted that countries usually have their production decrease or increase by several thousand,” noting that “Iraq’s share has increased several times, according to the decisions of OPEC Plus, indicating that the significant improvement in oil prices is due to the decline in the impact of the Corona pandemic and the return of normal life and economic activities to the former. her reign.”

Despite the financial positivity that Iraq can derive from the rise in oil prices, Bilal Al-Khalifa pointed out that “the fair price of oil serves everyone, and that the rise in the price of a barrel will revive the budgets of the rentier and oil-producing countries, including Iraq, but it will lead to a rise in many prices and costs.” Because it is the backbone of life, and as we have noted that last year witnessed an inflation rate of 22% in the world.”

 

revenue increase 

In a related context, the Ministry of Oil expected that Iraq's production would rise to more than 4 million barrels per day in next March.

The Undersecretary for Extraction Affairs, Karim Hattab, said in a statement received by the Iraqi News Agency (INA), that "the ministry succeeded in achieving an increase in financial revenues for the year 2021, after witnessing an increase in the total financial revenues derived from oil exports to (75,650) billion dollars, with a noticeable increase." on last year's budget forecast.

He added that "the increase in revenues came despite the economic and health challenges represented by Covid-19 and its aftermath, which contributed greatly to covering a good percentage of the financial deficit of the government's budget for the aforementioned year," noting "the importance of the commitment of the producing countries in (OPEC +) to the stability of oil markets." and overcoming the crises that afflicted the economies of the countries of the world after the spread of the Corona pandemic.”

He expressed his hope "that the required balance between supply and demand will continue to be achieved over the coming period, after the increase that will be supplied to global markets by (OPEC +) and in the amount of (400) thousand barrels per day, starting from next March, and the increase in Iraq's share to (4,370). million barrels per day,” they referred to as “an important step to achieve additional financial revenues.”

 

[horsesoldier]

Here’s a proposal...get yourself a globally recognized currency instead of whining and crying and the whole woe is us the sky is falling  

 

See the New Crisis, same as the Old Crisis 

[Rochester]

2 hours ago, horsesoldier said:

Here’s a proposal...get yourself a globally recognized currency instead of whining and crying and the whole woe is us the sky is falling  

 

See the New Crisis, same as the Old Crisis 

When I make a lot of money, I gonna miss your point of view....LOL

[NMP2017]

7 hours ago, horsesoldier said:

Here’s a proposal...get yourself a globally recognized currency instead of whining and crying and the whole woe is us the sky is falling  

 

See the New Crisis, same as the Old Crisis 

They can't/won't do it on their own. They want everything handed to them on a silver platter.

 

Well with oil prices WAY UP it has been! Sadly someone still needs to tell them to do it!

[Dinar4Dinner]

U.S. Oil Prices Hit 7 Year High

U.S. oil prices surged to a seven-year high last Thursday, rising to more than $90 a barrel, and this could be bad news for the fight against the climate crisis. 

 

The surge comes a little less than two years after oil prices dipped below zero for the first time during the beginning of the coronavirus pandemic, when supply outstripped demand. However, since then demand has risen while producers have worked to moderate supply, as CNBC explained. 

 

“The oil market is so tight that any shock to production is going to send prices soaring,” foreign-exchange company Oanda’s Ed Moya told CNBC. “OPEC+ production is on cruise control with their gradual increase strategy, which means oil seems like it’s going to make a run towards $100 oil pretty soon.”

 

Right now, one shock to production is the extreme weather event that has brought cold and snow to oil-producing regions in the U.S.

 

“The latest upswing was triggered by a cold snap in Texas, which is fueling concerns about production outages in the Permian Basin, the largest U.S. shale play. A year ago, a period of extreme cold weather had caused massive disruptions to oil production there,” Commerzbank commodity analyst Carsten Fritsch said in a note to clients reported by MarketWatch.

The winter storm has knocked out power to 350,000 homes and businesses in states including Texas, Tennessee and Arkansas, and more precipitation and ice is forecast for the eastern U.S. last Friday. 

 

Another factor in the surging oil prices are worries over tension between Russia and the Ukraine, as well as instability in the Middle East, CNBC reported.

 

Finally, OPEC+ said last Wednesday it would not increase production to meet demand, but would instead stick to its original plan of upping production by 400,000 barrels a day, as CNN reported. 

 

The rebound in oil prices is another example of how the falling energy use of the initial lockdown period has not yet eased a transition to a renewable energy economy. U.S. greenhouse gas emissions rose 6.2 percent in 2021 compared to 2020 levels, for example, rising faster than the economy rebounded. And the economic rebound means that global coal demand has risen to record levels, The New York Times reported. 

 

High oil prices might mean that production increases after global investments in oil and gas projects fell by 30 percent in response to the pandemic. ExxonMobil said last Tuesday it would up its spending on new wells and other projects by as much as 45 percent. However, it’s also possible that high oil prices might drive consumers away from fossil fuels when possible, prompting them to purchase electric vehicles, for example.

 

https://www.ecowatch.com/us-oil-price-surge.html