We are expecting RV and suddenly a wave of Coronavirus started to arise, none of us have thought that it would affect the economy so egregiously that the investment in stock exchanges will be starting to obliterate in different countries. Among shares in stock exchanges, the most dropping shares are of Oil, especially after the recent dissension between Saudi Arabia and Russia. The main reason behind these uproar discords is the competition to supply Oil to Asian region. Due to the Coronavirus the demand of Oil has been reduced because of the freezing economic activities and these two are the major exporters of Oil to the Asian countries so they indulge in the contentions which are increasing with the passing of days.
So, the new battle between them has started of presenting the lowest price to their buyers and this was the main reason behind the bottom price of Oil barrel to around $9 compared to $35 per barrel. Russia clearly knows that they would gain better in competing rather than from cooperating. No one can predict for how much duration the pandemic of Coronavirus will last but It is quite obvious that it will comes to an end by the middle or end of the summers. We were expecting the RV in the middle of the 2020 but in these circumstances, it is quite difficult to expect it before the end of this year. If relations between Saudi Arabia and Russia will not be revamped then for US it will be a golden opportunity to take a chunk from the Oil market and increase its Oil production and become a dominant player in the region, if it will happen than by the end of Coronavirus, US will be ready to control the prices of Oil production without influencing Saudi Arabia. There is also opportunity for the Iraq to enhance enrichment of its Oil production and expand Its exports of Oil which will increase the foreign exchange reserves of Iraq. The enhancement of foreign exchange reserves of a country is a factor which directly proliferate the currency of the country. The Iraq and United States stance on ongoing Oil crisis will specify the time of Revaluation of Iraqi Dinar.
