Iraq has revised down its budgeted oil price for 2015 to $55 a barrel from the $60 in its previous draft budget, reflecting the continued slump in the crude market.

The budget deficit will rise to IQD25 trillion ($21bn) despite the government revising its projected spending down to IQD119 trillion.

The Brent crude price is still trading at below $50 a barrel, having fallen from $115 in June 2014 after four years of largely $100-plus prices.

Increasing Iraqi oil production is adding downward pressure on crude prices, which have fallen on lower-than-expected economic growth in China and a non-conventional oil production boom in the US, creating an oversupplied market.

The country’s Oil Ministry reported record crude production for December 2014, saying output had increased to a monthly average of 4 million barrels a day (b/d). This was driven by increases in production from the Kurdish region of northern Iraq and the revival of exports from the Kirkuk fields.

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