Mazhar Mohammed Salih, the Iraqi prime minister's financial advisor.
Monitor
Economic adviser to PM warns of possible global oil price downturn
BAGHDAD — “There are signs the world is entering a downturn cycle in oil prices,” economic adviser Mazhar Salih said during a session at the Center for Strategic Studies and Trade Policies at Iraq’s Ministry of Trade.
Salih said Iraq’s federal budget has accounted for fluctuations in the oil market and described the current global situation as “a temporary crisis expected to stabilize.”
He cited opposing global trends — easing geopolitical tensions on one hand and escalating trade wars on the other — as key factors that could reduce global energy demand.
Experts from Mazhar Salih’s statement to the Center for Strategic Studies and Trade Policies:
There are signs the world is entering a downturn cycle in oil prices, but this will not impact Iraq’s internal situation. Iraq’s federal budget for 2023 to 2025 accounted for fluctuations in the oil market, and a global decline in oil prices will not affect domestic conditions.
The indicators are attributed to a reduction in the intensity of the Russia-Ukraine conflict, Iran’s openness to negotiations with the United States, and the escalation of a U.S.-led trade war that imposes tariffs across various markets, excluding oil and gas. These factors have negatively affected oil contracts and markets.
The current global situation is considered a temporary crisis expected to stabilize soon in line with global economic balances.
The clash between geopolitical easing and the escalation of the trade war may lead to a global economic shock that reduces energy demand.
The oil rivalry between China and the United States is crucial, with China being one of the largest oil importers and the U.S. one of the largest producers. Stability in oil prices remains a vital issue for both countries.
