China-Iran Economic and Security Relationships and Its Impact on the Essay

China-Iran Economic and Security Relationships and Its Impact on the disconnectedness Cooperation Council (GCC) - Essay Examplehas more than a quarter of the total valet petroleum reserves, Iran has the fourth largest rock inunct reserves and Iraq has huge oil deposits and is second to Saudi Arabia in terms of quantity. (10) On the otherwise hand, wiretap and Kuwait are too abundant in oil (9) and are considered as two of the lead oil producing countries in the world. What is more important around this region is that the cost of occupation of oil is normally low compared to the cost of production other oil producing countries. Several states in the region, including Saudi Arabia and Iraq, employs cheap working class thereby effectively reducing the cost of production even more. Since the cost of producing oil is much set out in Iraq and Saudi Arabia, these countries earn more income from their operations than most other oil producing countries. Furthermore, with low oil pr oduction cost, countries around the Gulf like Iraq and Saudi Arabia have more flexibility in the events where prices of oil in the world market dive.The instability of prices of oil in the world market makes it difficult for other oil producers to keep up with the fluctuations of prices. However, since oil is the primary source of energy all over the world and it is difficult to find alternative sources of fuel, consumers have to go through the ups and downs of prices. Every time there are disturbances in the shopping centre East and production of oil is affected, the prices will shoot up. For instance, if a crisis in Middle East causes a net deficit of four million barrels of oil a solar day this estimate could double in just a short time.(6) This gap in the production and the aspiration of oil could cause a huge imbalance in the supply and demand for oil. This means that when disturbances overhaul in the Gulf area, a series of economic events will be triggered as oil producti on in the area slow down.The United States understands the role that the oil producing countries are playing in the Gulf. It also sees the grave consequences of a slowdown in the