Decline in oil prices in world markets affects Iraq’s budget, says parliamentary committee30/06/2012 17:56
ERBIL, June 30 (AKnews) – Iraq's parliamentary finance committee has expressed its concern over the continuing decline in oil prices in world markets and their impact on the federal budget of the country.
Committee member Shorish Mustafa said: "Iraq's budget was built on an oil export capacity of 2.6 million barrels at $85 (99,000 IQD) per barrel. That was six months ago and the volume of exports has not reached its limit, but the oil prices in global markets are lower than before.
"Decline in oil prices will affect the overall federal budget. If the decline continues, the committee will hold a meeting with the Ministry of Planning and Finance to study the situation."
The price of oil witnessed a significant decline in the world markets within the last 90 days, with the price of one barrel dropping by $30 (35,000 IQD) from $97 (113,000 IQD).
In December the Iraqi government approved the county's 2012 budget which amounted to $100bn (117tr IQD).
By Ranan Brusk