How oil is bringing Iraq, Egypt closer

On Oct. 14, an Egyptian government source revealed on condition of anonymity that following Russian-Iranian mediation, Cairo had reached an agreement with the Iraqi government to cover Egypt's oil needs and make up the shortfall in the Egyptian market’s necessities.

The Iraqi-Egyptian agreement came after Saudi oil company Aramco announced cutting the supply of petroleum products to Egypt, which provided an opportunity for Iraq to send an indirect message to Saudi Arabia showing its ability to support Egypt and all of Saudi Arabia’s Arab opponents.

Iraq is already supplying Egypt with 200,000 barrels of oil per month. However, now it will supply it with 1 million barrels per month, and this seems sufficient to meet Egypt’s oil needs.

On Oct. 16, Iraqi member of parliament Adnan al-Asadi called on supporting the Egyptian government by selling it oil on credit, like Iraq does with Jordan.

Asadi said in a press statement, “Saudi Arabia is currently launching an extortion campaign against Egypt for its positions in support of the Arab countries in the fight against extremism and armed groups. This is why we call on the parliament and the Cabinet to stand by Egypt’s side in support of its decision and in order to put an end to all political blackmail.”

Prior to this call, former Transport Minister Baqir Jabr Al-Zubeidi had called Oct. 13 on Abadi’s government to activate the memorandum of understanding signed between Iraq and Egypt, which stipulates providing Egypt with Iraqi crude oil.

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