Iraq proposes oil price assumption of $58 per barrel in draft budget

Iraq's government ​has proposed an oil ‌price assumption ​of $58 a barrel with total spending projected at 217 trillion ‌Iraqi dinars ($166 billion), lawmakers familiar with the 2027 draft budget said on Tuesday.

The proposals would leave the ‌budget with a deficit of more than 40 ‌trillion dinars. The legislation projects crude oil exports of around 4 million barrels per day, including shipments from the ⁠Kurdistan region, ​four members ⁠of the parliamentary finance committee said.

The government is also considering ⁠adjusting the dinar's exchange rate to between 1,400 and ​1,500 per US dollar from around 1,300 currently, the ⁠lawmakers said. Oil sales account for the bulk of Iraq's ⁠state ​revenues.

The Iran war and resulting disruption to shipping through the Strait of Hormuz have ⁠prompted Iraq to seek alternative routes and transport options after ⁠its ⁠Gulf crude shipments were interrupted. ($1 = 1,309.5000 Iraqi dinars)