Economist: 50% of Iraqi oil prices will be affected by the drop in US crude prices
08:50 - 04/21/2020
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The economic expert, Dr. Safwan Qusai, explained on Tuesday the reasons for the drop in American oil prices to levels not previously recorded in history, indicating that 50% of Iraqi oil prices will be affected, especially exported to Europe and America, while oil exports to Asia will remain at the level of 20 dollars For the barrel.
Qusai said in a statement to "The Information", that "the drop in US oil prices is the result of speculation in future contracts for the next month of May, as who can buy in the future can buy and sell during a limited period, and the last day for trading on the stock exchange was yesterday, so that the US treasury energy Oil has reached its highest levels, so it can no longer store more oil, especially as there are no oil importers in light of the Corona virus outbreak, which pushed prices down significantly.
He added that "the future contracts for the month of June next, the price of a barrel reached at $ 22," noting that "there are more than 100 million barrels stored in the world, especially Europe, so some countries are forced to sell at a low price."
And that "Iraqi oil is sold in three markets (Asia, Europe and America) and each market has its own price, but more than 50% of Iraqi oil goes towards Asia, especially China and India, where the Chinese economic movement began to return, which makes the price of Iraqi oil at 20 dollars. Per barrel, and the Chinese economy is expected to return to normal in next July, at which time the price of a barrel of oil will reach 40 dollars.
He explained that "50% of the Iraqi oil prices that go east will not be affected by the decline in American oil, and it could be strengthened if [You must be registered and logged in to see this link.] presents[You must be registered and logged in to see this link.]Facilities for Chinese companies, and consequently, it is possible to increase oil exports to China after a portion of the oil exported to Europe is transferred to China. 25 n ended