Average Iraqi oil price is around $20 per barrel, and the country sells its oil at two different prices on the European and Eastern markets, Iraqi oil minister said.
Iraqi oil minister, Thamer al-Ghadhban, said in an interview with Iraqi news outlet al-Mirbad on Monday that the country exports its oil on the European markets at a price of $4 less than current Brent oil price.
The minister did not reveal the export prices for Eastern markets.
"Around 70% of country's crude exports go the Asia which is the best in terms of price," he said.
"The problem is not only decreasing prices but also momentarily fluctuation in the prices."
Iraq, OPEC’s second-biggest oil producer, pumps around 4.6 million barrels per day.
The country is struggling to support its finances despite its ability to pump at will as of April 1 following OPEC and its allies failing to curb their crude oil production levels this month.
Oil revenues in February 2020 declined by 18% to $5.052 billion compared to January, according to the statistic issued by the State Organization for Marketing of Oil (SOMO).
Iraq, which relies on oil revenues for 95% of its budgetary income, has trouble repaying international oil companies that develop major oil fields in the southern part of the country.
Therefore Baghdad sent a proposal to all international oil companies asking them to reduce the budgets of developing oilfields by 30% as the fall in oil prices has hit government revenues.
According to Moody’s, Iraq is one of the most vulnerable oil producers in this price crash and could see its fiscal revenues and exports drop in 2020 by more than 10% of gross domestic product this year.
By Busranur Begcecanli