Plunge in oil prices threatens Iraq’s postwar recovery

Plunge in oil prices threatens Iraq’s postwar recovery
The latest plunge in oil prices has dealt a heavy blow to Iraq’s stagnating economy, threatening the new government’s ability to rebuild after the devastating war with Daesh and provide basic services to areas roiled by recent protests. (AP/Felipe Dana/ File)
Updated 01 January 2019

Plunge in oil prices threatens Iraq’s postwar recovery

Plunge in oil prices threatens Iraq’s postwar recovery
  • The new government’s ability to rebuild after the war with Daesh and provide basic services to areas roiled by recent protests is under threat
  • Brent crude oil, used to price international purchases, briefly rose above $85 a barrel in October but has since plummeted to less than $55

BAGHDAD: The latest plunge in oil prices has dealt a heavy blow to Iraq’s stagnating economy, threatening the new government’s ability to rebuild after the war with Daesh and provide basic services to areas roiled by recent protests.
Brent crude oil, used to price international purchases, briefly rose above $85 a barrel in October but has since plummeted to less than $55 — a nightmare for a country like Iraq that derives 95 percent of its revenue from oil exports.
A $111.9 billion draft budget sent to parliament in October projects crude exports of 3.8 million barrels per day to be sold at $56 per barrel. The bill, which includes a 23 percent increase in spending, would leave a deficit of $22.8 billion.