Iraq's crisis threatens global oil reserves, the most important

by **Ponee** Mon Jun 23, 2014 9:34 am

Threatens escalation of violence in Iraq, the most important investment of global oil reserves, while it was expected to be the country's second oil producer in the Organization of Petroleum Exporting Countries, OPEC, oil country essential for the future.

And employed groups major Western, including «BP» (me. PE) and «Exxon Mobil» and «Shell» and the two companies «China National Offshore Oil Corporation» and «China National Petroleum Corporation» giants billions of dollars to invest in oil fields in the country since 2008.

Today means an attack organization «Daash» that the process of updating the major oil fields in southern Iraq down day after day.

Half said Antoine, head of oil industry and markets in the International Energy Agency, according to the "Times": There is no doubt that Iraq except America's most important country in terms of future oil production.

Oil prices rose from $ 109 a barrel to $ 114 because of the crisis, but they did not reach to the extent that analysts expect in the case of Iraq stopped exporting.

Foundation said Capital Economics «in a bad scenario stops with him the bulk of Iraq's oil output, may increase the price of Brent oil at $ 140 a barrel easily.

But on the long term may hamper the battle to secure Iraq's oil output low price, which is estimated at 11% of the world's proven reserves, at the time began to run out of oil in other fields ».

Analysts say the fighting in Iraq may slow gradual process, which seeks through which Turkey to restore balance to the economy, rise in oil prices could raise inflation and the collapse of a major export market, will impose pressure on Turkey's efforts to reduce the deficit widening in the current account balance.

And contributed to the low pound and higher interest rates to calm the domestic demand and export subsidies in recent months. This in turn reduced the current account deficit, which represents the main weakness of the Turkish economy, and helped to restore the balance of the economy in the wake of significant growth was the basis on which the credit is to check through. Economists estimate that every rise in oil prices by ten dollars, lead to high inflation in Turkey increased by 0.5 percent, and increase the current account deficit by four billion dollars.

The deficit fell to 16.37 billion dollars in the first four months of this year, and has become slightly less than 57 billion dollars in the twelve months up to the end of April.
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