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American writer: Iraq situation will affect oil prices more than Trump and OPEC
The Economy News - Baghdad:
The American writer, Anas Alec, announced that the Iraqi situation is able to influence oil prices more than US President Donald Trump and the Organization of States. The oil exporter, indicating that China is monitoring the situation in Iraq with great concern because it is the largest importer of Iraqi oil.
The writer, Anas Alec, said in a report published by Oil Price, that the conditions of Iraq are able to influence oil prices more than President Donald Trump and more than the Organization of Petroleum Exporting Countries (OPEC ).
The protests revolve around the lack of basic services in an oil-rich country, but they cannot provide electricity or safe drinking water for their people, and in fact these demonstrations denounce the massive corruption and corrupt system that has led to mass unemployment amongst young adults, as well as the deterioration of the education and health care system .
The writer pointed out that the resignation of Adel Abdul Mahdi represented the only factor that prevented a major armed conflict between protesters and security forces in southern Iraq, where all the oil reserves are located, and if the protesters seized Basra, they would be at stake five million barrels per day and 12% of the proven reserves in the world , And billions that come from foreign investment .
The writer stated that China is the largest buyer of Iraqi crude, and one of the largest investors in the Iraqi oil and gas industry .
Last September, the Iraqi Basra Oil Company signed a contract with the Chinese to develop and complete eighty oil wells in the giant Majnoon oil field as well as in Basra, with Chinese hopes to increase sales of crude oil from Iraq by more than two-thirds to reach 850 thousand barrels per day by the end of this year , And it is possible that Beijing is monitoring the situation in Iraq with concern .
The writer added that Russia, in turn, has invested in the energy industry in Iraq with more than ten billion dollars over the past nine years .
This includes the development of the West Qurna field of the "Lukoil" company in Basra, which represents about 9% of the total Iraqi crude oil production. As for other places in the country, these investments include the company "Gazprom" in the center of the country, and in the Kurdistan region of northern Iraq .
The writer clarified that the next question is whether the protesters dare to act because of oil .
In fact, all indications are that they will do so, and they have already participated, as they closed the roads leading to five oil fields in Basra, and the anger over corruption and the things that oil money spends from Baghdad is transferred to this province.
In conclusion, the author believes that the government has only two options, either the complete suppression of the protesters, which means bloodshed beyond what we have already seen, or the major reform, which is difficult, especially with Iranian influence. What the market must respond to is the clear and present danger facing 12% of the world's proven oil reserves .
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