OPEC's strategies to control world oil prices and their impact on the stability of the Iraqi economy

Abstract

Oil occupies an important and essential position within the world economies, as it represents a global strategic commodity and an essential raw material in the chemical and petrochemical industries, and it is also versatile in either industry or agriculture, in addition to its uses in the daily life of man, which made it an important place within the frameworks of international trade. And a special site in shaping the economic map of the world, and this research came to shed light on OPEC's strategies to control global oil prices and their impact on the stability of the Iraqi economy, this reinter economy that depends mainly on oil revenues and is positively affected by the rise in the price of a barrel of oil and revives and is negatively affected by the decline in oil prices So much so, he may face a large federal budget deficit. Despite the great importance that oil plays for the exporting and importing countries, its prices have always fluctuated from time to time, which reflects negatively on the global economy in general and the Iraqi economy in particular.The extent of the impact of the mechanisms and strategy of OPEC to control global oil prices represented by the strategy of reducing the price of a barrel of oil, as well as following another strategy, which is to reduce production, and the two strategies had a clear impact on the stability of the Iraqi economy, as oil revenues constitute the main tributary of state revenues to finance the general budget. It was found through the research that the Iraqi economy remains a reinter economy unless the industrial and agricultural sectors are developed to diversify the sources of hard currency.Keywords: OPEC, oil revenues, Iraqi economy, general budget, production cuts, oil price reduction.