Oil expert Hamza Al-Jawahiri confirmed that regional tensions in the political arena will lead to an increase in oil prices, indicating that the current slight decline did not affect Iraq’s financial revenues.
Al-Jawahiri said in a statement to the National Iraqi News Agency / NINA /: “Oil prices, which currently stand at about $ 77 per barrel, are still sufficient to cover operating expenses such as salaries for retirees and employees, but the state’s policies in dealing with oil revenues are not appropriate, as the government relies heavily on appointing employees without actually needing them, which constitutes an additional burden on the budget.”
He pointed out: “Iraq now needs a price of $ 60 per barrel to cover its basic expenses, while any increase over $ 69 is allocated to finance the investment budget.”
The Iraqi budget for 2024 has witnessed sharp criticism, especially regarding the estimation of the price of a barrel of oil at $ 80.
This estimate is considered high, according to many experts, who believe that the oil price estimate in the budget should be more conservative, in anticipation of a collapse if global oil prices fall.
Source: National Iraqi News Agency