The repercussions of the decision of some oil-producing countries to reduce

A group of oil-producing countries decided to cut production voluntarily, in coordination with a number of countries that participated in declaring cooperation from OPEC members and from outside, starting from May until the end of the year.
Russia will implement a voluntary cut in oil production by 500 thousand barrels per day, Saudi Arabia will also reduce by 500 thousand barrels per day, Iraq 211 thousand barrels per day, the UAE 144 thousand barrels per day, Algeria 48 thousand barrels, Kuwait 128 thousand barrels per day, Oman 78 thousand barrels. .
The decision has implications on the political and economic levels and on several parties, including oil-consuming countries and oil-producing countries, and Iraq in particular, and especially on its budget. The reason for these effects is that within less than an hour, the price of Brent crude rose six dollars.
Part One: The Economic Aspect
First: The Impact of the Decision on Iraq (its Budget)
1- Its Impact on the Government
Iraq exports an average of approximately 3,500 thousand barrels per day, with the region’s exports, which are scheduled to be 400,000 barrels per day (according to what is proven in the draft budget), and since the price of a barrel of oil the day before the decision was made is around $79 for Brent crude and arrived. to $85 per barrel.
In the event that things went normal and the decision was not taken and that the price remained fixed until the end of the year (this is something impossible), then the oil revenues will be (276.5 million dollars per day) and (66.3 billion dollars at the end of the year), and now after reducing 211 thousand barrels per day, but The global price of signal crude has risen, so the total daily oil revenues for Iraq will be (279.56 million dollars per day) and (67 billion at the end of the year).
Whereas, we note that oil revenues increased by three million dollars per day as a result of this decision, and increased by about one billion dollars for the rest of the year, and therefore the decision is in the interest of the economy and the federal budget.
2- Its impact on the citizen
Usually, the simple citizen does not seek any noticeable change in his financial situation if the state’s revenues increase or decrease, but in the event of a decrease, the state may go to deduct part of the state’s salaries, as happened in the days of ISIS and the drop in the price of a barrel of oil, and this will also affect Negatively the rise on the citizen, since the international prices of commodities will rise due to the rise in oil, and that Iraq in all its commodities, at a rate of up to 100% of its needs, are imported, and therefore the citizen will be affected.
Second: The impact of the decision on the producing countries
We explained, in the example of Iraq, which is one of the important oil-producing countries because it is the second largest producer within the Organization of Petroleum Exporting Countries (OPEC), and how the decision raised the volume of its oil revenues. 
Third: Oil-consuming countries
The effect of reducing oil production by this quantity will be double on the consuming countries, because the price of fuel will increase, and thus transportation will rise, as well as the price of commodities.
Part Two: The Political Influence
First: Iraq
1- It is an important step that is considered for Iraq to have put its own interests ahead of those of America and the West.
2- It is a step that brings it closer to the eastern axis, especially since the scale is tilted towards it day after day, and that Iraq exports most of its oil to China.
3- It is considered one of the steps of the balance of power in Iraq's dealings between East and West.
4- The important producing countries, especially Saudi Arabia, have taken great steps towards advancing their interests despite Western objections, and Iraq's position in support of this decision is important for it to take the same steps for it.
Second: Europe
considers this decision disastrous for the European countries as it is a major consumer of oil in the world and that it suffered a lot because of the high price of oil after the Ukrainian crisis and that it is trying to find an alternative to Russian oil and gas and all alternatives are more expensive and now and after this decision the European crisis will increase and perhaps in the future it will affect On the decisions of some countries politically.
Third: America
America is one of the major producers and owns large strategic oil reserves and also owns companies that work on shale oil, which has a high production cost, and any increase in the price of a barrel of oil will be in the interest of those companies and therefore will not affect them much.
Fourth: Oil-producing countries, it will increase oil revenues and thus serve them.
Fifth: consuming countries, it will increase the pressure on their economies.
Sixth: Russia. This decision is considered a major victory for it in the field of economy, diplomacy and alliances, especially since it sought to make OPEC have a similar decision to confront it, and therefore this decision will increase the factors that will make it victorious, which will put more pressure on Ukraine and Europe.
Seventh: The Kingdom of Saudi Arabia

The recent decisions of Saudi Arabia are very big and will accelerate the coming global change in terms of economy and politics, and this decision will increase the anger of the current authority in America and will bring it closer to the eastern axis, to which it has become very close, especially after my requests to join the Shanghai Organization and the BRICS countries.

Conclusion: The decision increased the position of the eastern axis, Russia in particular, and will weaken Europe. Therefore, my classification of the decision is political before it is economic. Previously, OPEC stated that it would maintain the price of oil within these limits, and it is now following the same approach and plan.
As for Iraq, the reduction will not affect it for several reasons, as we note that last month we noticed a decrease in Iraqi oil production, as well as the recent arbitration decision that prevented the region from exporting a blister without it being through the federal government, and therefore it is currently producing less than what was announced last night. .