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The article states how Iran is cheating on Iraq by drawing its oil. A report from International Centre for Development Studies that is based in London reveals that Iran is ripping of oil worth $17 billion from Iraq. The fields that it is being pumped from, is mostly Iraqi and does not share borders with Iran. A vast number of these fields are inside the Iraqi borders. These fields feature more than 100 billion barrels of oil. The amount of oil that Iran steals from Iraq is estimated at a whopping 130,000 barrels. Most of this oil comes from Iraqi oil fields - Beidar West, Naft Shah, Aban and Dehloran. Iran has even further violated the oil rights of Iraq in the fields of al-Tayeb and Fakka along with parts of Majnoun field that is home to an estimated 250,000 barrels of oil. The amount of oil that Iran steals from Iraq is judged to be about 14% of Iraq's total revenue. The two countries have previously agreed to form joint committees to monitor the oil in bordering fields. However, Iran disregarding this agreement is pumping out oil individually from these fields. The oil from Iraq reaches Iran through a wide spread smuggling network. On an average 35,000 barrels of oil reach Iran. The smuggling of this oil from Iraq lowers the harsh impacts of the economic sanctions imposed on Iran. The stolen oil is then re-exported to Iraq after being manufactured transformed into oil products or electric power. By the agreement between the two countries, Iraq can import the first four million barrels of oil from Iran to meet the energy shortage. In the meanwhile Iran's daily oil production has been raised by 20 million litres in 2012. The report by the London think tank states that such leniency by Iraq towards Iran is surprising when it imposes so many restrictions on its oil partners within Iraq. The central government of Iraq has even boycotted companies that have signed agreements with the autonomous region of Kurdistan even when it will have negative impacts on the national economy of Iran. The International Centre for Development Studies in its reports has called upon the Iraqi government to demarcate the borders of its oil fields while also promoting local oil manufacturing facilities. The report states that this is crucial regarding the fact that Iran is now seeking contracts with Russia and China that will allow the countries to seek oil from Iraqi oil fields. Oil prices have been volatile due to the sanctions on Iran. Further turmoil and conflict may result either in collapsing of oil prices. How this report affects prices on oil is yet to be seen. The author is an accomplished writer in oil related fields, who regularly writes articles related to oil prices & indexes and crude oil including tips on investment in oil. Please visit oil.com for more details.
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