After the crash in the price of crude … Iraq asks foreign oil companies to cut budgets

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A senior Iraqi official in the oil sector said that Baghdad had asked all international oil companies to reduce their budgets by 30 percent, due to the significant decline in crude prices.

The official added to Reuters that the cuts should not affect production.
For his part, a source in one of the foreign oil companies said: “We received the letter about the budget cut by 30 percent, we have not taken a decision yet.”

A letter seen by Reuters reported that ExxonMobil in Iraq, the main developer of West Qurna-1 oil fields in southern Iraq, also asked all of its suppliers to cut costs.

Oil prices fell to their lowest levels in years, beginning in March, after OPEC and its allies failed to reach an agreement to reduce production supplies, and Saudi Arabia began to increase production and reduce the price of its crude.

The Saudi move, which was described as igniting a new price war in the oil market, and which coincides with global concerns about the continued spread of the Corona virus, and its potential impact on global demand, pushed the market to witness its worst days since the Gulf War.

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