The Iraqi government estimates that the price per barrel will settle at $42 over the course of the next year, which has been reflected in the country's draft budget, Iraq’s minister of oil, Ihsan Ismail, told state newspaper Al-Sabah.

"The government estimated the price of a barrel of oil at 42 dollars in the draft general budget for the year 2021, according to the economic data of the global oil market and the repercussions of COVID-19 on the activity of industrialized countries," Ismail said.

The minister also reiterated the country's commitment to the oil production limits agreed by the OPEC+ group and openness to extending the timeframe to uphold prices.

The coronavirus pandemic wreaked havoc on global oil markets over the course of the year, sending demand plummeting with lockdowns and flight cancellations around the world.