Posted on 02/03/2016 1:21:55 PM PST by Lorianne
According to a Monday AFP report, Iraq is now selling oil at half of the country's apparent fiscal break-even price.
Right now, Iraq is selling its oil at around $22 a barrel, half of what it would need to fetch for the country to be able to fund the upcoming year of government budgetary obligations, the report said.
(Excerpt) Read more at businessinsider.com ...
Carpet bombing.
East to West and North to South
Sorry, my give-a-damn’s in the shop.
What about Iraq is NOT “dire”?
Altogether too much damn attention is paid to this miserable corner of the world. Nuke it all & start over.
Low global oil prices are wreaking havoc on Iraqi Kurdistan’s finances. Although the cash-strapped Kurdish government has managed to export oil independently of Baghdad since June 2015, it will increasingly rely on foreign support the longer oil prices remain depressed, regardless of how much control it has over its oil export revenue. The Kurdistan Regional Government (KRG) will rely heavily on Turkey to keep oil exports and revenues flowing as it struggles to address both its own disintegration and the profound effect that the financial strain is having on the morale of peshmerga fighting the Islamic State.
Even if oil prices rise enough to enable the Arbil-based government to meet its spending needs — or even start to repay its estimated $14 billion in debt, $4 billion of which is owed to oil companies alone — many of the legal challenges to the KRG’s authority will remain. So far, Baghdad’s attempts to use legal claims to dissuade customers from buying the Kurdish government’s oil have been unsuccessful. However, Arbil’s recent move to sell Iraqi oil from Kirkuk, which lies outside the Kurdish autonomous region, will invite further legal disputes with Baghdad. These challenges will push the KRG even closer to Turkey, paving the way for a greater role for Ankara in Iraq’s Kurdish region.
An Unsustainable Drain on Finances
Arbil’s financial concerns are great and growing. At its heart, Kurdistan is a region that supports its people by putting them on the government’s payroll; roughly 1 in 6 Iraqi Kurds are considered employees of the KRG. Weighed down by a bloated public wage bill totaling $700 million to $800 million a month, Kurdish officials are struggling to find a way to pay the salaries of their peshmerga fighters, teachers, oil workers and other civil servants. At the same time, the KRG’s budget must somehow fund the patronage networks that form the foundation of Kurdish society. All told, Arbil’s spending commitments add up to about $1 billion to $1.1 billion per month (or $12 billion to $14 billion per year).
https://www.stratfor.com/analysis/why-iraqi-kurdistan-struggling-pay-its-bills
Boo! Hoo!
I say, let them both fall.
We tried to do the right thing years ago and may have eventually succeeded if we had stayed and worked with them. But we didn't. Obama pulled the plug years ago. So why should we now support Iran's satellite with our money?
thanks for that information
Iraq in in money trouble, but I gather the regional Kurds to be in deeper trouble.
And several other are in as bad or worse shape.
It’s a shame Bush didn’t realize this and ended up delusionally believing that Iraqi oil mattered and that Iraq was salvageable.
So what?
Famine? The export of oil pays for import of food. They all fall short of food self sufficiency.
Civil war and mass exodus would be a reasonable prediction. A precipitous drop in oil exports may occur. 30$-—>250$ bbl???
Only reason I give a damn... because this is the creation of the nation against God.
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