Shafaq News / Data released by Chinese customs on Friday revealed a decline in Iraq's share of China's overall crude oil imports for the month of May 2023, dropping to a mere 9% after previously standing at 11% in previous months.

This can be attributed to Malaysia's rising market share, as it claims the third spot after Russia and Saudi Arabia as the largest oil exporter to China, according to Manar Al-Obaidi, President of the "Future Iraq" Foundation, an organization focusing on economic affairs.

Al-Obaidi pointed out that Malaysia's ascendancy can be attributed to its role in legitimizing the sale of Iranian and Venezuelan oil, with both countries utilizing Malaysia to legitimize their oil sales to various nations. Consequently, this has led to a decline in Iraq's export rates to the world's second-largest economy after the United States.

Moreover, he raised the question of what would happen if Chinese demand for Iraqi oil decreased due to preferential prices offered by Russia, Iran, and Venezuela. Would Iraq be able to keep up with these prices, or would it be forced to further decrease its export volumes?

Al-Obaidi also questioned the strategic marketing plans of SOMO, the major engine driving Iraq's economy through the sale of its crude oil. He pondered whether there are any strategies in place to open up new markets in Africa, Asia, or Europe, or if Iraq remains reliant on the mechanisms established by other countries to ensure the ability to sell its oil to diverse nations.