PM Advisor: Oil price indicators remain stable despite global fluctuations

INA - BAGHDAD

PM Advisorr, Mudhher Salih, stressed on Tuesday the importance of caution and economic preparedness regarding the fluctuations witnessed by the US economy and their repercussions on the global economy, especially on energy markets.

"A few days ago, economic rounds in the world were faced by sharp fluctuations and declines in the US stock market amid a wave of panic over fears of a possible recession in the largest economy in the world, which is the US economy. It is the main financial indicator that witnessed a decline, including the Dow Jones Index for major industrial companies in the United States, by about 1000 points at once," said Salih to the Iraqi News Agency - INA. 

He added, "These declines were based on a combination of local and global economic factors that led to a weakening of investor confidence in the performance of the US economy, especially since the US employment index indicates a trend towards unemployment with an expected decline in GDP growth. If the situation continues for six consecutive months, the recession will turn into a major depression that will hit all economies of the world." 

"The FX volatility index is currently witnessing a sharp rise. This means a loss of investor confidence in the future of the economy in the United States, and that financial market traders are moving towards short positions," he indicated, adding "This leads to selling stocks at their current prices before they deteriorate to allow repurchase at low prices, or what is called long positions in the future within the cycle of falling financial assets. In general, financial markets interact with the convergence of real economic indicators and geopolitical developments in the Middle East, Ukraine and other regions of the world, which causes widespread concern and major movements in the instability of the global financial market." 

Salih pointed out that "what matters to Iraq is the current position of energy markets and global demand for crude oil, whose indicators are still relatively stable, as previous expectations found that the global oil market is represented by rising prices, in light of strategic adjustments in production by OPEC+, especially amidst varying regional economic and political developments."