Iraq’s oil revenues to balloon amid current rise in global prices: Economist

Baghdad (IraqiNews.com) – Iraq’s oil revenues will jump to $96 billion; driven by the current rise in global oil prices, Iraqi economist Govand Sherwani said.

In an interview with Baghdad Today news website, Sherwani added that the surge in oil prices will lead to an economic recovery in the country.

The economist noted that last year’s state budget as regards oil revenues saw a deficit of some $20 billion.

The projected recovery will help the government bring the US dollar exchange rate back to its previous levels or reduce its current value in the domestic market, he said.

Sherwani noted that the surplus in oil prices can be used to carry out investment projects that slash poverty and unemployment rates.

Oil prices rose more than 1% on Wednesday as investors weighed conflicting statements on the possible withdrawal of some Russian troops from around Ukraine, US News reported.

Russia’s threatening posture toward Ukraine has dominated oil markets for several weeks, with concerns that supply disruptions from the major producer in a tight global market could push oil prices to $100 a barrel.

“The market has been reflective of what the situation has been and what it could be, which is ambiguity from one day to the next,” said Edward Morse, global head of commodities research at Citi.

Brent crude settled up $1.52, or 1.6%, to $94.81 a barrel. U.S. West Texas Intermediate (WTI) crude ended up $1.59, or 1.7%, to $93.66, pulling back from the day’s high of $95.01 a barrel.

On Monday, both benchmarks hit their highest since September 2014, with Brent touching $96.78 and WTI reaching $95.82.