But the international price of crude has fallen remarkably since August, dampened by the worsening debt crisis in Europe and United States and fears of a double-dip recession of the global economy.
The IMF reckons that a 10% rise in oil prices knocks 0.2-0.3% off global GDP growth in the first year, but the impact on a big oil consumer like America is twice as large.
But Baghdad officials say Iraq — suffering from a cash crunch due to faltering oil production and lower global crude prices — has an interest in making BP's entry into Iraq smooth.