Oil prices might rise next year

Published November 8th, 2000 - 02:00 GMT

Oil prices are expected to go up next year, Minister of Energy Wael Sabri said on Monday.  


“It is only natural that [oil prices] rise. But this issue will be decided on when discussing [next year's] budget and if there is a deficit it would be made up by hiking the prices of oil,” Sabri told the Jordan Times.  


According to Sabri, the government might hike oil prices since subsidies for oil derivatives presently range from 20-40 percent.  


However, Sabri said the expected hike is tentative until it is approved by the House of Representatives.  


Sabri added that the hike will be minimal depending on the deficit. He added that prices of other items might be raised instead of oil.  


Sabri said the hike will not be known until the budget is studied and approved by the Cabinet and Parliament.  


Iraq and Jordan signed an agreement on Friday under which Baghdad will supply Amman with five million tones of crude oil and by-products next year.  


Jordan and Iraq have agreed on $20 as a ceiling for the price of a barrel with a discount of 40 per cent for every increase over $20.  


Iraq delivers annually 4.8 million tones of crude oil and products worth $600 million to Jordan under concessionary terms. Iraq is to give Jordan oil worth $300 million under their trade agreements for 2001. 

( Jordan Times )  

By Oula AlFarawati  


© 2000 Mena Report (www.menareport.com)

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