Iraq proposes $58-per-barrel oil price assumption in draft budget
USO•Iraq's government proposed a $58-per-barrel oil price assumption and 217 trillion dinars ($166 billion) in spending for its 2027 draft budget, leaving a deficit of more than 40 trillion dinars.
1. Budget proposals
The legislation projects crude oil exports of around 4 million barrels per day, including shipments from the Kurdistan region, lawmakers familiar with the draft said. The government is also considering adjusting the dinar's exchange rate to between 1,400 and 1,500 per U.S. dollar, from around 1,300 currently.
2. Oil and shipping
Oil sales account for the bulk of Iraq's state revenues. The Iran war and resulting disruption to shipping through the Strait of Hormuz have prompted Iraq to seek alternative routes and transport options after its Gulf crude shipments were interrupted.
