An economist explains the economic feasibility of bartering between Iraq and Iran
An economist explains the economic feasibility of bartering between Iraq and Iran
2023-07-15
The economic expert, Nabil Al-Marsoumi, explained the economic feasibility of bartering between Iranian gas and Iraqi oil.
Al-Marsoumi said in a post on Facebook: “Bartering, or rather clearing, is usually between two parties, one of whom has a surplus of a commodity and the other suffers from a deficit, but Iran does not suffer from a deficit in the production of crude oil and black oil, but rather from US restrictions on its oil exports.” Therefore, it does not need Iraqi crude oil.”
He explained that “Iraq’s production of black oil in 2021 amounted to 335,000 barrels per day, rising in Iran to 384,000 barrels per day, while the demand for black oil in Iraq is 189,000 barrels per day, compared to 255,000 barrels per day in Iran, and therefore Iran has A surplus of black oil amounts to 49,000 barrels per day, and therefore it does not need Iraqi black oil.”
Al-Marsoumi continued, “Iraq, especially when it sells crude oil and black oil at international prices as stated in the agreement, will be the biggest winner because it will be able to export its surplus oil production from the fields of Kurdistan and the surplus of black oil to pay the Iranian gas import bill.”
While Iran will not be able to use crude oil and black oil for internal consumption because it is self-sufficient in them.
He pointed out that Iran “is not able to re-export them due to US sanctions, which raises doubts about the practical application of this spending between Iraq and Iran.”
Earlier, Prime Minister Muhammad Shia al-Sudani announced that Iran would be bartering black oil in exchange for gas imported from it.
burathanews.com
