Economic committee warns of economic setback with fall in oil prices04/07/2012 19:31
ERBIL, July 4 (AKnews) - The economic committee in the Iraqi Council of Representatives warned today of an economic recession in the country due to the fall in oil prices.
Oil prices registered the largest decline since the financial crisis in 2008, and this raised concerns among some members of Organization of the Petroleum Exporting Countries.
Committee member MP Khalil Mahma Sinjari warned in a statement of "a setback in the Iraqi economy due to falling world oil prices," and urged the federal government to "take necessary measures to face it”.
Iraq produces more than 3 million barrels of oil per day and exports about 2.4 million barrels per day. Oil imports constitute about 95 percent of the country's financial budget.
He called on the federal government and the Iraqi Oil Ministry to work quickly to find alternative outlets for the export of Iraqi oil through the Strait of Hormuz in the event of any military tension in the region that may cause closure of the strait.
He called on the federal government to find alternative sources for oil, including supporting the investment sector and economy, agriculture, industry and tourism.
By Abdullah Sabri