Iraq oil earnings slashed in half in March after price crash

Iraq's revenues from crude sales dropped by nearly half in March, its oil ministry said Wednesday, as a global price crash stokes fears of collapse for the petrol giant.
The second-biggest crude producer in the OPEC oil cartel, Iraq sold 105 million barrels in March, earning $2.99 billion, according to an oil ministry statement.
In February, it sold fewer barrels - 98.3 million - but earned nearly twice as much at $5.5 billion.
The difference is due to plummeting prices, with Brent North Sea crude sinking to $25.11 on Wednesday, the lowest price in 18 years. The slump is due to a price war between major producers Saudi Arabia and Russia, as well as a drop in demand caused by the spread of the novel coronavirus. Iraqi oil trades at about $4 less than the benchmark price, with Oil Minister Thamer Ghadban telling local media this week that his country's crude was selling for $21 a barrel.
That is worrisome for Iraq, where oil revenues make up more than 90 percent of the state budget in the absence of significant alternative industries. Officials had drafted a 2020 budget based on estimates Iraqi crude would sell for $56 per barrel. At that rate, Iraq would face a monthly deficit of $4 billion just to keep the government running and pay salaries to its bloated public sector, the International Energy Agency estimated last month.
Iraqi officials have told AFP they are considering a range of cost-cutting measures to trim the budget but have yet to finalise their plans.