Iraq expects $25 billion in revenue due to rising oil prices |
Iraq now expects to earn $25 billion in oil export revenue in six months due to rising oil prices, the state news agency reported on Friday, quoting the finance minister from the country.
The Iraqi federal government has not yet received any revenue or funds from oil exports from the northern Kurdistan region, although it is obliged to pay them, Ali Abdul Ameer Allawi added.
World oil prices have been rising since the start of the war in Ukraine on February 24, and the United States has also repeatedly urged OPEC members to increase oil production to stabilize the market. Iraq is also part of the production levels agreement.
Worries over the conflict in Ukraine, which is fueling inflation and hampering economic growth, dominated trading in the second half of the week, with the International Monetary Fund cutting its forecast for global growth by nearly a point. percentage.
The year 2020 represented the most difficult economic interval that Iraq has gone through. Since 2003, it has gone through a moribund period that pointed to a future in which oil prices will crash and global demand will decline.
“2020 was a glimpse of what could happen and it was a very dangerous time and one of the factors that led us to look at the structural issues affecting the Iraqi economy,” Allawi said in his speech in margin of the spring meetings of the World Bank and International Monetary Fund in Washington.
The Iraqi government depends on oil revenues to cover its costs and pay the salaries of civil servants. Although it has suffered for much of 2021 due to record low oil prices, the country’s economy is once again booming as oil prices rise globally.