The financial affairs adviser of the Prime Minister, Mudher Mohammed Saleh confirmed that “the continued rise in oil prices will compensate the large amounts of the federal budget lost due to the significant decline in oil prices since 2014”.
He said in a statement to the National Iraqi News Agency (NINA), “Many economic and geo-political reasons lie behind the continuous increase in the price of crude oil in the global market for oil.
He added that “the new price balances that broke barrier through the $ 70 a barrel are necessary to rebuild the production cost to compensate the losses suffered by oil companies because of the high investment costs due to low revenues caused by the low price of oil produced in the previous period, especially the problems of the cost of production of rock oil in the north of the American continent.”
Oil prices rose above $ 70 a barrel for the first time since 2014, as investors bet OPEC-led production cuts will dominate the market this year.
Source: National Iraqi news Agency