#hemi $HEMI Iraq reduces crude oil prices for December, increasing competition within OPEC.

Iraq, the second-largest oil producer in OPEC, announced on Saturday evening its plan for crude oil pricing for December, as prices have decreased across all regions. Basrah Light is trading at a discount of $0.35 for Asian markets, $2.95 for European markets, and $1.35 for American markets. While these adjustments are not significant, their implications are clear.

Brent crude is currently trading in a narrow range around $75, and competition among oil-producing countries is intensifying. With weak demand, it becomes increasingly difficult to maintain a balance between production cuts and competition for market shares. It is important to know whether other member countries, especially Saudi Arabia, will follow Iraq's lead after the proactive price cut.

If Saudi Arabia and other major member countries follow suit, global oil prices are likely to face downward pressure. Inflation expectations and the monetary policy space for various countries will be affected. The performance of exchange-traded funds linked to crude oil and the energy sector may not be strong in the short term, and investors should be prepared.