Oil markets need to be producing countries deal

9/4/2016 0:00

Baghdad .. Imad Emirate
Oil is tributary of the first to the sustainability of life in most of the world 's oil and shares effective contribution to development projects and provided technological and since the late nineteenth century expanded trading volume in oil markets and contracts so that those contracts became Lady commodity markets.

Academic d. Haider Frejee said that the oil market needs regulation by the relevant in this regard organizations, where it would take to reach the producing countries to agreements on crude production and export to world markets at affordable prices to all parties.

He said the oil and since extracted and Bmarora in various refining processes and even consumption but is an integrated financial cycle contribute to cash flows around the world, as it is extracted about 160 different articles of crude oil directly or indirectly , and these materials enter into intermediate and final Industries of up to 400 industrial product or a consumer, and thus, oil prices but also reflected in the costs production and therefore different products costs.

He said the oil market is made ​​up of a number of collaborating parties, including the petroleum exporting countries, accounting for producing and exporting countries, which includes the countries of «OPEC» comes Saudi Arabia at the head of these countries exports exceed 10 million barrels a day, and then importing countries oil which countries are importing crude oil or its derivatives for the purpose of domestic consumption , the United States and the US are at the forefront of these countries import amounted to 10 million barrels a day, then there are big companies and includes a number of companies which manufacture and marketing of crude oil, is the most prominent of seven sisters, which consists of five US companies and a British company and other Dutch British joint.

He pointed to the existence of a group of national companies operating in some oil - producing countries , as is the case in most of the Arab Gulf states, this is handled oil contracts in a number of stock exchanges around the world , such as Rotterdam and Genoa and Singapore Exchange and Texas and other global bourses.

Frejee pointed out that when they are eating oil prices by professionals in the field of oil , it is usually treated with a different set of these prices, which measure each specific value of oil Among the most prominent price used is the advertised price , a price of a barrel set by the major seven sisters calculated monetary union , the US dollar has begun to deal with this kind of price in 1880 when Standard oil company announced Bermiha the oil price at the wellhead and then to work with this kind of price in the United States and abroad has continued to the present.