Posted on 05/01/2020 5:54:36 PM PDT by BeauBo
Iraq’s revenues plummeted in April amid a historic oil price crash, the Oil Ministry said Friday, raising concerns over how the country will cope with severe financial shortfalls while struggling to contain the coronavirus pandemic.
The crude-dependent economy earned just $1.4 billion in oil revenues last month, at an average price of $13.8 per barrel, according to data released by the ministry, a sixth of average figures from before the oil price crash...
The figures provide the first tangible indication of the desperate circumstances facing Iraq as officials struggle to determine how to implement austerity measures — expected to be widely unpopular — while operating on dwindling revenues.
Meanwhile, a political leadership vacuum also looms as Iraq’s prime minister-designate faces opposition to forming a government and the current leadership is hobbled by the limits of its caretaker status.
Iraq officials are deliberating cuts to social benefits payments to public sector employees as a means to cut spending, but a decision has not been made over how much to cut and from whom. Compensation to the country’s bloated public sector and pensions have historically been a drain on the state budget, amounting to nearly $45 billion in annual expenditure.
Officials said payment spending could be cut by 30% to 50%.
(Excerpt) Read more at apnews.com ...
Thank goodness that Obama sent them $1.4 trillion to keep them going. Who knows what might have happened without that lifeline.
There goes my investment in Iraqi Dinars....they will never revalue like the Kuwait money did.
Man, I hope the stimulus meant the end of giveaways to foreign governments.
I know. I crack me up, too.
I believe the Magic Negro sent Iran that money.
I misread the country. My bad.
sell your cheap oil to us. we’ll fill our reserves.
“I misread the country.”
The situation is likely even significantly worse for Iran.
They are also getting hit with the low crash price for their exports, having to sell it at a further discount to smuggle it around sanctions, and still selling much less volume.
Coronavirus is worse there too. One of the worst in the world.
Let them drink it.
I pray that the good God brings from this plague will be the collapse of evil regimes in China and Iran.
Tell them to code.
My sympathy level is less than zero.
The can eat the sand that is there.
Been there twice. We should have just cratered the place.
I find it impossible to get a handle on the covid impact.
It was easier to get info on it in China back in January!
“It is going to be hard for OPEC to keep production cuts”
Saudi Arabia, OPEC’s largest member, and Russia have not CUT production (yet??), they are both running full steam ahead and plowing the price down to new floors. The price would not be so low, and smaller producers like Iraq would not be taking as large a revenue hit if the Saudis did CUT production, as they should, to lift the price per barrel of what is produced.
I have wondered if the Saudis are not intentionally trying to hurt the smaller producers.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.