Iraq hopes OPEC deal will help cover its massive war costs

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From The Seattle Times:

“BAGHDAD (AP) — The government of Iraq is hoping that a new OPEC deal will help the war-weary country generate enough revenue to help pay for its costly, 2-year-old fight against the Islamic State group.

Iraq, whose oil revenues make up nearly 95 percent of its budget, has been reeling under an economic crisis since late 2014, when oil prices began their descent from a high of above $100 a barrel.

The plunge began just months after IS militants swept across large parts of northern and western Iraq. They seized territory that prompted a huge effort to rebuild and rearm large segments of the military and security forces and to care for a flood of people displaced from their homes.

On Wednesday, the 14-member Organization of the Petroleum Exporting Countries sealed a deal to lower its output for a six-month period by 1.2 million barrels per day. Effective Jan. 1, the group will produce 32.5 million barrels per day.”

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