Iraq is not able to reduce oil production, accounting for about 90% of the country’s revenues. This, in turn, jeopardizes the OPEC + deal. Earlier, Iraq agreed to cut production by almost 25% in May and June, but actually reduced production by only 10%. For this, the country has been criticized more than once by Saudi Arabia and Russia.
Failure is due to the plight of the Iraqi economy: a wave of protests against corruption and a low standard of living swept through the country at the beginning of the year, then the coronavirus pandemic and a drop in oil prices began.
Most businesses in Iraq were closed, and the government borrowed about $ 2.5 billion from local banks to subsidize salaries.
As reported by Rambler, in March oil fell sharply as a result of the failure of the OPEC + agreement to reduce production. In April, OPEC + member states and some other states agreed to reduce production by 9.7 million barrels per day in May-June and by 7.7 million barrels per day since July.
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