Iraq’s Consequences after OPEC+ Decision to Cut Oil Production

Remember last week when I told the channel about OPEC’s decision to cut oil production and how that would affect Iraq who depends heavily on oil revenue?

Well, there are two lines of thoughts:

The Oil Minister of Iraq said that his country hopes the OPEC+ decision to cut production by 2 million barrels per day will contribute to world market stability and support crude prices.

The second line of thought paints a different image for Iraq.

Iraq will lose $612 million US dollars a month because of OPEC’s decision. This calculation is based on oil being priced at $85 a barrel.

The lost goes down considerably when oil prices increase to $100 or more per barrel. However, Iraq is still in trouble because the country imports almost all goods and materials including basic food.

The increase in oil prices will surely place the world in a position for higher inflation. It will cost more for goods and materials to be delivered to and from foreign countries.

You can watch the entire video on OPEC’s decision on the Edu Matrix channel.