The impact of rising oil prices on the world economy

Oil prices are raising after Saudi Arabia's National Oil Company (Aramco) increased its crude oil prices.

Daban Abdulwahid Hassan

After Asian markets opened this week, oil prices is rising after Saudi Arabia's National Oil Company (Aramco) increased its crude oil prices. Brent oil prices rose 90 cents on Tuesday and were traded at 83.64 cents per barrel. Each barrel of Texas oil reached 87 cents and was traded at 82.14 cents per barrel.

Last Friday evening, Aramco put the price of Arab oil, which is the Saudi oil brand in December at 2.7 US dollars above the "Oman Dubai" oil. This is $1.4 more than Saudi Arabia had set for this month. There are still no barriers to the oil market to pose a threat to decrease the oil price. Banks and major international centers have expected oil prices to reach $ 100 by the end of this year.

"The role of petroleum in the world economy"

Today, oil considers as one of the world's economic principles. No country can have a strong economy, if it doesn't think to oil. Needs of the world on oil day by day is increasing. Today, the world needs is 97 million barrels per day. America is the world's highest producer, which needs 19.4 million barrels per day; it is equivalent to about 20 percent of the world's needs.

Then the Republic of China comes which every day uses 12.2 million barrels and it is expected that the number will increase in the coming years. Then Japan uses 5.5 ml barrels. The first oil export country is Saudi Arabia, which produces more than 10 million barrels of oil daily and produces 17.1 per cent of the world's oil exportation.

Formerly Russia is using 11.4 per cent of the world’s oil. About Iran, is using 5.7 per cent of the world’s oil, the Emirates uses 5.5 per cent of the world. People's concerns are about gas market, which its production has decreased. There is gas stored in Europe, but it does used merely in a few weeks, due to weather, solar and wind energy is decreasing, so the only way to turn to other traditional energy such as oil and coal.

If Iraq and the Kurdistan Region have a intelligent policy and takes a scientific path in the field of oil and gas, and show its revenues transparently, it can make oil and gas the best dynamo for the revival of the Kurdistan Region, if they do not do it and continues as it is now, and does not review the contracts of oil companies, they will face a major financial loss for the coming years.

The Bank of America believes that increases in demanding for crude oil will increase over the next year and a half, so it will look positively at oil prices in the next few months. In September of this year, the bank reported on turmoil in the European energy market and disappearance of the continent's natural gas reserves, saying oil prices would continue to rise.

The Bank of America now says, rising demand for gasoline, gasoline and aircraft fuel, as US refineries decline, will lead to further increases in oil prices next year. This month, oil producers from OPEC and outside OPEC are scheduled to meet on the future of the oil market. Although oil producers are being asked to increase the size of oil production, they do not seem to be listening to these demands and the amount of oil production is more than agreed upon.

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