Oil prices slip as Kurdistan export resumption looms

On the back of the prospect of a resumption of exports from Kurdistan’s oilfields and investors waiting for clarity on talks to resolve Russia’s war with Ukraine, oil prices fell in Asia on Monday, extending losses from last week. Brent futures were down 14 cents, or 0.2%, at $74.29 barrel, as of 0441 GMT, while U.S. West Texas Intermediate crude futures lost 22 cents, or 0.3%, to $70.18 a barrel.
Both Brent and WTI dropped by more than $2 on Friday, posting weekly declines of 0.4% and 0.5%, respectively.
“The downward spiral in crude oil prices is driven by pressure from the U.S. president on Iraq to resume oil exports from Kurdistan oilfields, which could improve supply flows in global oil markets after nearly two years of disruption,” said Sugandha Sachdeva, founder of New Delhi-based research firm SS WealthStreet.
An official from the Iraqi oil ministry stated on Sunday that once oil shipments resume, Iraq will export 185,000 barrels per day from the oilfields in Kurdistan through the pipeline between Iraq and Turkey. Iraq’s oil ministry said all procedures had been completed to allow the resumption of exports through the Iraq-Turkey pipeline, potentially resolving a dispute that has disrupted crude flows.
The progress of talks to end Russia’s war on Ukraine, which enters its fourth year on Monday, remains the focus of all attention. On Sunday, officials said that leaders of the European Union will meet for an extraordinary summit on March 6 to talk about more support for Ukraine and security guarantees from Europe. This follows the U.S. President Donald Trump initiated talks with Russia on ending the war but without inviting Ukraine or the European Union to the table. A senior Russian diplomat said Russian and U.S. teams plan to meet this week to discuss improving relations Sanctions by the U.S. and EU on Russian oil exports have curbed its shipments and disrupted seaborne oil supply flows. Global energy supplies are expected to increase if a peace deal is reached and sanctions are lifted.
Oil prices will be influenced by geopolitical developments and U.S. policy announcements in the short term, Sachdeva said.
In the Middle East, a Hamas official said talks with Israel through mediators on further steps in a ceasefire agreement are conditional on Palestinian prisoners being released as agreed.
Israel and Hamas have frequently accused each other of violations since the ceasefire started on January 19, but so far it has continued to hold.