When it comes to the nations most vulnerable to threats to the oil supply, Iraq trailed only Kuwait.
The effect of the growing war in the Middle East and the Gulf on major producers of gas and oil was examined in a research published by Energy Intelligence.Iraq’s strong reliance on oil earnings combined with its shaky economic underpinnings make it the second most susceptible country in the Middle East in terms of oil supply threats.
Even though all of the Gulf’s economies are dependent on gas and oil, some of them are less diversified than others, which means that the budgets of these nations are heavily reliant on these commodities.
Iraq and Kuwait lead the Middle East in terms of heavy reliance on oil, with 87 and 88 percent of their GDP, respectively.
Despite having sufficient oil income for 2022 and 2023 and reasonably strong reserves held by the Central Bank of Iraq (CBI), Iraq is not a sovereign wealth fund, has a large budget deficit, a high debt load, and a low credit rating.
In addition, Iraq has a population of about 45 million, whereas Kuwait’s population is just about 4.3 million.
