Tuesday, February 2, 2016

Iraqian cliff dive

Business Insider: The plunge in oil prices is already having far-reaching effects on countries whose economies are dependent on oil exports.
But in Iraq, the stakes of cheap oil are even higher than in Saudi Arabia, which is instituting unprecedented taxation and austerity, or in Nigeria, which isnow asking for an $11 billion World Bank loan.
What little remains of Iraq's government and social order might collapse if oil remains in its current price trough — with dire consequences.
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. 
And also Saudi Arabia and Nigeria.  Those  American frackers done upset the petroleum markets.

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