The Baghdad Post

Expert says renewing oil agreement between Egypt, Iraq serves bilateral interests

Experts have said that the agreement between Iraq and Egypt on renewing the agreement on oil sale for one more year will yield good results for both countries.

In press remarks, Abdul Hussein al-Monzeri, an economic expert, said, “renewing the oil agreement between Egypt and Iraq for selling one million barrels of Basra crude oil monthly is to serve both Iraq and Egypt, so the latter guarantees buying its needs of oil in a stable way and good price.”

Iraq, according to Monzeri, “guarantees the ongoing sale of part of its oil to a permanent customer in light of unstable international oil market due to the increase in the product from OPEC and other non-OPEC countries, which caused its price to decrease.”

Monzeri added that Iraq “should preserve its country even for one year, because it is in need for the ongoing cash flow since it highly depends on the revenues from oil.”

He also indicated that most oil rich countries have bilateral agreements with many countries to import oil at prices lower than those on the market to preserve the customers. Source