The real impact on the oil-producing countries of the Middle East is not political relations with the Soviet Union, but the competition with Soviet oil for the Western European market, the Soviet Union was still a net importer of oil in the Mossaddegh era, World War II destroyed the oil facilities in the Soviet Caucasus, the Soviet Union itself restored its economy, and needed a lot of oil to keep running, especially the fourth five-year plan, the Soviet Union built a large number of heavy industrial equipment, domestic oil production was in short supply, but in the late 50s, the Volga-Ural oil field was discovered, The production of Baku and Tyumen oil fields continued to recover and expand, and the crude oil of the Soviet Union increased by an average of 12% per year, and after 1955, the Soviet Union's oil production maintained a high-speed growth momentum, driving the peak of exports. In 1950, the Soviet Union exported 265 million barrels, in 1955 it increased by 235 million barrels, in 1958 it increased by 735 million barrels, the Soviet Union's oil increased by 7.884 million barrels in five years from 1948, an increase of nearly 14 times, because the Soviet Union is a planned economy country, oil prices are completely priced by the government, lack of market regulation, the Soviet Union in order to enter the European market often set lower prices, oil prices are on average 10%-12% lower than the international market oil prices.
Soviet oil often has certain political objectives, and low oil prices can enhance its influence on Europe, increase Western Europe's dependence on Soviet oil, and improve diplomatic relations between the Soviet Union and Western European countries. The Soviet Union's way of exporting oil is quite flexible, through barter, the Soviet Union provides oil, Western European countries provide various means of production and means of subsistence of manufactured goods, many of which are dual-use equipment, of which West Germany, Japan, Italy are the main importers of Soviet oil.
The Soviet Union's oil exports have a great impact on Middle East oil-producing countries, most of the Middle East's oil-producing countries are market economies, often production costs, labor wages and other material costs are the primary factors to consider, political factors ranked second, Middle Eastern oil-producing countries if they maintain the same price as the Soviet Union, can only lose money; Since most of the oilfields in oil-producing countries in the 60s were controlled by Anglo-American oil companies, they asked the British and American governments to limit the interference of Soviet oil in the European crude oil market through political means, and after negotiations between the British and American governments, the European Community passed a resolution in Brussels, requiring member states to limit Soviet oil imports to less than 10%, although in the European market, curbed the interference of Soviet oil, but in other parts of the world, the Soviet Union still seized the market share of the Middle East countries with low prices. The dumping of international oil exports by the Soviet Union caused the international crude oil market to be in a state of oversupply, which led to the continuous decline in international crude oil prices in the 60s, which caused Anglo American Oil companies and Middle Eastern oil-producing governments to suffer great losses.
Summary: This chapter focuses on the role of Iran, Iraq, and the Gulf oil states in British oil policy in the Middle East, which was the focus of British oil policy until 1958. Iran has always occupied an important position in British oil production, through the joint suppression of the Mossaddegh nationalization movement with the United States, and established close ties with the Pahlavi Shah, although Britain regained the oil concessions, but the situation of British monopoly on Iranian oil is gone, the United States has replaced the British position in Iran with its strong strength, Pahlavi and the United States reached the honeymoon period in the 60s.
For Iraq, before the 1958 revolution, Britain and the Kingdom of Iraq had close relations, Britain through the Iraqi Oil Company found oil sources in the north and south of Iraq, and successfully obtained oil concessions, although the Iraqi regime in the Kingdom era several times put forward the demand to improve oil rights, but did not touch the fundamental interests of Britain in Iraqi oil, the Iraqi revolution changed Britain's strategic position of oil in the Middle East, the new government put forward conditions for Britain to finally gradually abandon the concession, This in turn began the process of nationalization of Iraqi oil; Politically, Britain gradually transferred political affairs such as air bases to the Iraqi government by amending the content of the treaty, and like Iran, Britain also encountered challenges from the United States in Iraq, and the United States also had to provide financial assistance due to Iraq's strategic position, and at the suggestion of Britain, Britain and the United States negotiated and compromised, and Britain and the United States reached a consensus in Iraq.
After 1958, after the outbreak of the revolution in Iraq, Britain's oil policy began to shift to the Gulf emirate. Compared with Iran, the Gulf Emirate has a small population, which is an important passage from the Gulf to the open sea, and is the most important link in the British Petroleum shipping lane. Britain's direct control over the Gulf emirates has been longer, and the United Kingdom has helped the Gulf emirates establish modern judicial, administrative and other systems, maintain operations, and assume the security and other functions of the Gulf countries, adjusting border disputes within the Gulf countries and between the Gulf countries and Saudi Arabia.
