Finance, oil ministries to set oil barrel price in 2011 budget

BAGHDAD / IraqiNews.com: Joint committees representing the oil and finance ministries have been watching the global market to set the price for oil barrel and help the cabinet determine it in its 2011 budget, an oil ministry spokesman said on Friday. “There are several changes that play a key role in determining crude oil prices in the global markets, like supply and demand, and their impact on prices, as well as the expected averages for the increase of Iraq‘s crude oil production,” Assem Jihad told IraqiNews.com news agency. He added that joint committees from Iraq‘s oil and finance ministries had set the price of a barrel of oil at 60 dollars, to be endorsed in the state budget for the year 2011. Jihad pointed out that last year had witnessed a surplus in revenues, adding Iraqi exports hit two million barrels per day (bpd). He expected a larger surplus next year due to the “expected increase in production, especially after the conclusion of Iraq‘s first and second tendering sessions”. SKH (S)/AmR 3