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Saudi Arabia launched a price war on Iraqi oil destined for the Asian market, as it reduced its prices by about 7.5 dollars per barrel, while Iraq reduced its price by 6.55 dollars per barrel, and Iraqi oil exported to India was ranked first in the month of March with the export of 1.071 million barrels Daily, and Saudi Arabia follows it by 731 thousand barrels daily and then the United Arab Emirates by 634 thousand barrels daily, but after the beginning of the price war launched by Saudi Arabia in the first of last month, Iraq’s exports to India became 797 thousand barrels daily while Saudi Arabia 1067 million barrels.
As for the Chinese market, Saudi Arabia increased its exports by more than 100%, to become 2.207 million barrels last month, after last March it was 1.065 million barrels, while Iraq increased its exports by 549 thousand barrels daily, since in March it was 848 thousand barrels daily while last month it rose to 1397 Thousand barrels.
Iraq and Saudi Arabia sell their oil to East Asia by adopting Dubai crude or the Sultanate of Oman, as Iraqi and Saudi oil are not listed on the stock exchange, and Iraq succeeded during the past years by acquiring the Asian market as it exports nearly 60% of its oil to China, India and South Korea.
The Deputy Chairman of the Iraqi Oil Marketing Company "SOMO" Ali Nizar said that India announced the closure of the ports due to the Corona pandemic, and thus reflected on its oil imports, as the Indian companies told us that they are unable to load Iraqi oil, indicating that the Indian companies import 12% of the oil Iraqi.
On the other hand, the oil expert, Nabil Al-Marsoumi, said that "Saudi Arabia is the price leader in OPEC and in light of its pricing for light Arab crude, the price trends for raw materials in Iraq, Kuwait and Iran are determined, affecting more than 12 million barrels of crude destined for Asia, and this is due to its capabilities Massive productivity, "noting that" Saudi Arabia succeeded through dumping policy and price discounts to acquire an important part of Iraq 's oil share in the Indian market. "
SOMO was not able to reduce its prices to less than Saudi Arabia due to the internal financial crisis that the country is experiencing due to the unilateral economy, which requires more money to cover the government's operating expenses, because Iraq’s revenues fell from 6 billion dollars from the beginning of this year to 1.4 billion dollars.
On the other hand, said the Indian Professor Girishish Pant, whose research focuses on energy issues and economic relations between India and the Gulf, that Iraq and Saudi Arabia are seeking to maintain their exports to India despite the Corona virus, indicating that Iraq and Saudi Arabia now need to motivate India to choose One to maintain its share in the Indian market and to this end, Saudi Aramco has sought to implement projects in India over the past years, such as a deal to build a refinery and a 44 billion petrochemical project.