Luaibi discuss to INA the impact of the fallout of the oil prices on the economy of Iraq

Thursday 19th March 2020 - 18:24

Luaibi discuss to INA the impact of the fallout of the oil prices on the economy of Iraq


Special to INA - Nassar Al-Hajj

 The former oil minister, Jabbar Al-Luaibi, revealed today, Thursday, the impact of the fallout of oil prices on the economy of Iraq.

 Al-Luaibi said in an interview with the Iraqi News Agency (INA): "The sharp decline in oil prices will have tremendous negative repercussions on the Iraqi economy, which turned into a one-pole rentier economy, which is oil."

 He added that "from the initial inquiries, the crisis will take some time before the simple and gradual recovery in prices, and accordingly, Iraq, due to its political and economic situation, will be in the first box of the levels of damage."

 He continued, "This is not the first time that there has been a sharp drop in oil prices. The situation has been going on since the beginnings of the oil industry, and the truth is this phenomenon was the cornerstone of the emergence of OPEC."

 He pointed out that "the reason why Iraq is more affected than the rest of the oil-producing countries is that the rest of the countries have given special attention in the development of the oil sector by raising the capacities of liquidation and exporting oil derivatives, whose prices are nearly twice the price of crude oil, as well as investing gas and exporting large quantities at high prices."  And the development of the petrochemical industry and many complex joints.

 He stressed that "Iraq wastes more than 30 billion dollars in importing derivatives, wasting gas and others," pointing out that "the oil sector needs more than desperately to restructure and pump new, efficient, capable and capable blood."