Oil prices fell for the fifth consecutive session on Tuesday after a preliminary agreement between Baghdad and the Kurdistan Region of Iraq to resume operations of an oil pipeline, raising concerns about oversupply.
اضافة اعلان
Key figures:
Brent crude futures fell by $0.42, or 0.63%, to $66.15 per barrel by 03:32 GMT.
West Texas Intermediate (WTI) crude dropped $0.36, or 0.58%, to $61.92 per barrel.
Both contracts have declined around 4% over five sessions.
Anne Vuem, senior analyst at London Exchanges Group, said:
"Concerns over oversupply remain dominant, while demand forecasts remain uncertain as the year-end approaches. The restart of the Kurdistan pipeline has also pressured prices."
Two oil officials confirmed that the governments of Baghdad and the Kurdistan Region had reached an agreement with oil companies to resume crude exports via Turkey on Monday.
The agreement will allow exports of approximately 230,000 barrels per day from Kurdistan, which had been halted since March 2023.
Market context:
Global oil markets are preparing for increased supply and slower demand, due to rapid growth of electric vehicles and economic issues stemming from tariffs.
The International Energy Agency (IEA) reported that global oil supply is set to increase faster this year, with a possible surplus in 2026 due to rising production from OPEC+ members and non-OPEC producers.
Market risks remain, including potential EU sanctions on Russian oil exports and any escalation of geopolitical tensions in the Middle East.
Preliminary Reuters surveys on Monday suggested a rise in U.S. crude inventories last week, with expected declines in gasoline and distillate stocks.
Other data from the Joint Organizations Data Initiative (JODI) indicated that Saudi Arabia’s crude exports in July fell to their lowest level in four months.
Iraq, OPEC’s second-largest producer, increased its oil exports under an OPEC+ agreement, according to the State Oil Marketing Organization (SOMO).
—Reuters
