On Sunday, the financial adviser to the Iraqi Prime Minister, Muhammad Saleh issued a statement that a continuous increase in the global oil prices would compensate Iraq for its massive loss during last 4 years. Saleh said in his statement that oil prices experiencing a continuous rise in the global oil markets and it would handsomely compensate a major portion of Iraqi federal budget. Point to be noted that Iraq experienced most critical condition during last 4 years due to a significant amount of downfall in the global oil prices since 2014. Saleh explained that most economic and geopolitical dishonesty reasons behind the recent continuous increase in the crude oil prices in the international markets. He said that the new oil prices will provide a significant amount of support in balancing the Iraqi federal budget. The oil price recently crossed 70 U.S dollars per barrel, so an increase in the production is essential to manage the losses experienced by oil companies.
Saleh explained that high investment costs with low returns took place due to low oil price on the oil produced during the previous time period. The futures markets in crude oil trading have reversed and crashed with long positions. They are now buying at a low price in order to sell at much higher price. It was due to the supply shortage of crude oil and other petroleum products in the United States. There were a number of factors contributed in the increase of global oil prices. It was escalated by the prediction of crude oil prices in the futures markets. It is important that oil prices crossed 70 U.S dollars per barrel for the first time since 2014. Iraq has experienced most critical economic and financial crisis since 2014 due to a significant amount of decline in the oil prices below 40 U.S dollars per barrel.