Downfall of Global Oil Prices Affecting Oil Export Countries Including Iraq

Iraqi Dinar 123 News:– The Iraqi Oil Minister Adel Abdul Mehdi issued a statement that the current financial and economic crises have been increase due to continuous downfall in the oil prices globally. Iraq is not the only county facing these crises but a large number of international oil companies and oil producing countries also facing this problem. He further added in his statement that Brent oil prices have declined from 65.55 U.S dollars to 45 U.S dollars per barrel from the month of June to August 2015. He said that the rumors have performed a major role in it. The increased exchange rate of U.S dollar is a major factor and imbalance in demand & supply in the Iraqi markets is another factor.

The new nuclear agreement between Iran and Six powers increased the amount of Iranian oil in the international oil markets, excluding the United States and some other countries. The economic growth in Asia and Europe is still facing problems such as the Chinese industrial sector has decreased its activity at its lowest level since last seven years due to decreasing its exports and domestic feeding in the Asian markets. Abdul Mehdi further said that the downfall in the global oil prices much affected not only to Iraq but most of the other oil exporting countries. Iraqi government is now looking to divert its concentration to other non-oil sectors in order to support its economy. Saudi Arabia has a number of great financial possibilities, but also faced financial problems last year. The reserves of Iraqi Central Bank also declined at 10 percent since last ten years.

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