Oil prices have collapsed due to a dispute between Russia and Saudi Arabia and the drop in demand due to the coronavirus. That will devastate Iraq which is the most oil dependent country in the world. Around 90% of its revenue comes from its petroleum sales. This couldn’t come at a worse time as the government is paralyzed because it has been unable to pick a new prime minister. Even if that wasn’t happening Baghdad has never planned for the ups and downs in the energy market increasing its budget every year prices stay high and then falling into debt and deficits when they collapse. The value of petroleum is so low however that it threatens the very state itself.
