New diplomacy of Iraqi oil prices to reduce the effects of Coronavirus epidemic
Dr. Hussein Allawi
Head of the Akad Center for Strategic Affairs and Future Studies
The current oil crisis is competing for and taking over market shares by increasing the supply of oil and reducing prices through discounts offered to the oil market in the Middle East, Asia and Europe.
On another hand, Corona’s crisis may extend from 3 to 6 months, the effects are still not calculated, therefore economic policies will be strict in terms of spending, especially in energy-consuming countries, while it will recover after October, according to most forward-looking studies and forecasts for the status of the international economy.
Iraq is one of the countries that depend on oil sales proceeds by 92% annually and we are in great trouble now for the budget in 2020.
The strategic solution for Iraq now is only to increase the source oil production by deducting prices to the Middle East countries by 4 dollars for April + May + June contracts and a $ 8 discount for Asian countries for April + May + June contracts and 12 dollars for Europe for April + May + June contracts 2020 in order to maintain the consuming markets.
Simulating the advanced method of energy security leadership and its interlocking with foreign policy, and therefore we call the following: –
– A meeting between the Ministry of Oil, SOMO Company, the Ministry of Foreign Affairs, and the Ministry of Trade in order to develop a joint plan to develop a plan (diplomatic – commercial) to lend, market and sell Iraqi oil.
– Holding individual and joint conferences of the Ministry of Foreign Affairs in terms of administration, coordination and leadership, the role of the Ministry of Oil is the main speaker on (the ministry’s new pricing policy).
– Inviting the foreign media, especially the international publications approved in the oil market, to publish the new marketing plan for Iraqi oil, which will be in a discounted price mix according to each of the three continents (Middle East – Asia – Europe).
– The Ministry of Oil develops a new plan for the countries affected by Corona in cooperation with international consulting experiences to market the new pricing plan to the countries affected by Corona through a contract package for the next 6 months starting from April – October 2020 and in which there are three packages of price discounts for the sale of the oil basket Iraqi countries affected by the Corona virus.
– Urging the Iraqi ambassadors and providing them with the necessary documents from SOMO and through the Ministry of Oil and through the Ministry of Foreign Affairs to market the new Iraq plan in the field of pricing and new commercial diplomacy for Iraqi oil in the three continents (Middle East – Asia – Europe), in order to encourage allies and move the positions of hesitant countries Oil consuming.
– The President of the Republic Dr. Barham Salih wrote a letter to the countries consuming Iraqi oil in order to send them to the ambassadors of the Republic of Iraq on the three continents (the Middle East – Asia – Europe) urging the countries to deal with Iraqi oil and buy it with new pricing packages in order to face the effects of the crisis Corona on the Iraqi economy and keep the expected oil revenue