Economist: Saudi Arabia And Iran Behind The Continuing Decline In Oil Prices

BAGHDAD / NINA / Deputy President of the Economic Information Center, Malath al-Amin confirmed continued decline in crude oil prices, after rising by 6% with the events of Yemen, attributing this to the increase of oil production by the Gulf States to in order to cover the military expenditures operations and the possibility of increasing Iran's oil production in the global market. He told the National Iraqi News Agency / NINA /, "The rise in oil prices, with the launch of the military operations, is a temporary as a result of increased production of Saudi Arabia, adding that" Saudi Arabia exports 7.4 million barrels per day, and with the continued fighting it may increase exports, which will lead to increasing the supply of crude in the international markets, which will deteriorate the price. " He added, "The success of the Iranian nuclear negotiations that will come out of the lifting of economic sanctions on Iran, including allowing it to return to the oil market and increase its share in the export of crude oil, will lead to a glut of crude oil in the market." He continued that "the increasing exports of crude oil from Saudi Arabia and Iran augmented by Iraq's desire to increase its exports to sustain the battle being waged against Daash terrorist gangs will raise the rates of supply of crude, therefore would expose the oil to a significant drop in prices may adversely affect the Iraqi economy." He called on the Iraqi government to "take quick action to avoid a drop in oil prices, including the diversification of imports of national income, depending on the industrial, agricultural and tourism sector, with the transport sector." The oil minister, Adel Abdul Mahdi guessed rise in crude prices to $ 70 a barrel by the end of 2015 and he played down the impact of the conflict in Yemen on prices. It is mentioned that Iran had reached an understanding on Thursday with a group / 5 +1 / about the basic principles of a comprehensive agreement between the two parties over Tehran's nuclear program, which resulted in the lifting of economic sanctions on Iran ./ End