Economist: There is no new oil price war.. Iraq should seize the opportunity to invest in its oil resources
Sunday 18 July 2021 19:40 | Economic Number of readings: 431
Baghdad / NINA / - The expert in economic affairs, Raad Twij, ruled out the occurrence of a new oil price war between / Saudi Arabia and the Emirates, Saudi Arabia and Russia /, stressing the importance of Iraq seizing this opportunity in investing its oil resources.
Twig said in a statement to the National Iraqi News Agency / NINA /: “Through the circumstances and conditions experienced by (OPEC Plus), that is, the coordination gathering between oil producers from OPEC members and oil producers outside OPEC to coordinate in the field of production volume and its impact on the market in the field of prices.
This coordination has gone through difficult circumstances in the period preceding the last agreement to reduce the volume of production, which led to a rise in oil prices, reaching $76, but the failure to reach a Russian-Saudi agreement led to a drop in oil prices to $20.
He added: This bitter picture of low oil prices is still present in front of all oil producers, which in most cases did not cover the cost of producing one barrel.
Therefore, this awareness and awareness of the importance of coordination in production is a process that affects the stability of the oil price, which represents the interest of all producing countries.
The recent Saudi-Emirati dispute over increasing the volume of production is almost fading away in the face of the Russian-Saudi dispute, due to the low volume of Emirati production, as well as it is a political dispute in some aspects.”
Twiej ruled out a new price war and if there was any slight drop in oil prices as a result of the demand deficit in some aspects. Oil prices are on the rise, especially with the approaching winter season, stressing the importance of Iraq seizing this opportunity in investing its oil resources.
Twig stressed, "The establishment of the Iraqi National Oil Company is a step on the right path in maximizing resources and reducing the cost of extracting it and replacing international oil companies, even if partially, noting that the significant rise in oil prices did not contribute to the financial abundance necessary to bridge the financial deficit of the general budget for the year 2020-2021. /finished8