Iraq plans to lower the oil price forecast in its 2016 budget to about $32 a barrel from $45, widening its fiscal deficit by several billion dollars. "The new price estimate is based on the continued low level of global oil prices in recent month"s, said Marwa al-Nasaa, Amman-based IMF resident representative for Iraq. "We're setting it closer to $30 based on the climate of international futures prices since November," she told Reuters on Thursday. Nasaa noted that the revised budget, which has not been finalized, is part of Iraq's negotiations for a standby agreement with the IMF. The standby agreement financing could be approved as early as June, unlocking $15 billion in international assistance over the next three years. The adjustment is expected to add about $6 billion to the OPEC producer's budget deficit unless offsetting measures are taken. Iraq's current budget, which projects oil exports of 3.6 million barrels per day, predicts a deficit of $20.56 billion.
