Despite record crude export volumes, the fall in oil prices and the costs of fighting a war have led Iraq to slash planned infrastructure spending for 2016.Iraq’s oil revenue is down over 40% on year-ago levels. This is despite the country’s federally-controlled crude exports hitting a record 3.19mn b/d in June, the fourth straight record month.

With no near-term likelihood of a sharp rebound in oil prices nor an end to the war with Islamic State (IS) insurgents, Mahir Jawhan, Undersecretary of the Iraqi Ministry of Planning, this week said that the country will slash spending on infrastructure by 30% compared to that in the 2015 budget. With new projects being slashed every week, actual 2015 infrastructure spending will also come in way down on the budget figure. (CONTINUED - 1796 WORDS)