Sharp Decline in Oil Prices and Statement of Resources Minister

Sharp Decline in Oil Prices and Statement of Resources Minister

On Monday, the oil price fell as fears of a sharp economic slowdown due to supply disruptions. The major reason behind the current decline is due to OPEC production cuts and U.S sanctions on Iran and Venezuela. Brent crude futures were at $66.73 per barrel, down 30 cents (0.5%) from the previous close. The U.S West Texas Intermediate crude futures fell 35 cents (0.6%) from the previous settlement price to $58.69 per barrel.

The crude has shown a decline of about 3% since it last week reached its highest level since November 2018. The recent move clearly indicates a possible recession in the United States erupted on Friday after cautious remarks from the U.S Federal Reserve. It led to the fall of 10-years U.S Treasury yields the 3-month Treasury bill rate for the first time since 2007. The shrinkage of industrial production data in Germany (Europe’s biggest economy) has exacerbated fears of a global downturn.

Sharp decline in Oil prices and statement of Resources Minister

Moreover, the Iraqi Ministry of Water Resources announced the amounts of rainfall that have hit Iraq so far. The Water Resources Minister Jamal Al-Adil informed in at a news conference along with ministry officials in Baghdad, “The Karun River in the province of Basra has very large flows from Iran and it is unprecedented for decades and we have seen what happened from Seoul in Iran. The cabinet will consider helping the crisis”. He said, “We control the Karun River and the levels and our problem will rise with the transgressors living in river basins and marshes”.

He also pointed out that it also includes Basra and our cadres are distributed throughout the provinces and field supervision. Al-Adil added that the Chabaish marshes in Dhi Qar want more water and a large area can accommodate larger quantities. He stressed that Iraq needs to improve the water and the region has in Lake Tharthar with 45 billion cubic meters of capacity and the Mosul dam has 10 billion cubic meters and now it is 8 billion cubic meters.

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