Market Insights: Oil Prices Decline Amid Kurdistan Export Developments
Oil prices experienced a decline on Friday evening, influenced by the potential resumption of oil exports from the Kurdistan Region and shifts in US customs regulations regarding trade partners, notably observed in February.
North Sea Brent crude slid by 86 cents, settling at $73.18 per barrel.
Meanwhile, Texas light sweet crude decreased by 59 cents, bringing the price to $69.76 per barrel.
The Iraqi Oil Ministry has announced that the Kurdistan Regional Government (KRG) is poised to begin oil exports via pipeline in the near future.
Specifically, the ministry indicated plans to commence exporting 185,000 barrels per day.
In a related note, tensions between Donald Trump and Volodymyr Zelensky have coincided with an increase in Russian oil entering the global market.
John Kildov, founder of EGen Capital consulting, remarked, “Russia stands to benefit from the Trump administration’s strain on Ukraine, enabling it to boost its oil exports.”
The current US administration has allegedly put pressure on Zelensky regarding military support for Ukraine, further complicating geopolitical dynamics.
Although the Iraqi Oil Ministry indicated that oil exports would commence shortly, eight oil producers in the Kurdistan Region have expressed reluctance to proceed with exports until unresolved financial entitlements are addressed.
Harry Chilingorian, an analyst at Onix Capital consultancy, noted, “The initiation of oil exports from the Kurdistan Region poses questions regarding Iraq’s compliance with the OPEC Plus agreement, which aims to regulate the country’s oil export levels.”
