FX.co ★ Oil Drops After Iraq Resumes Kurdistan Exports

West Texas Intermediate (WTI) crude oil futures declined by 1% to $65 per barrel on Monday, following the resumption of crude oil exports from Iraq's Kurdistan region over the weekend, marking the end of a two-and-a-half-year hiatus. This additional output adds to an already abundant market. The resumption results from an agreement among Iraq's federal government, the Kurdistan Regional Government, and international oil companies operating within the region. Initially, the arrangement will allow a flow of between 180,000 and 190,000 barrels per day (bpd) to Turkey's Ceyhan port. This development is in response to U.S. efforts to reintegrate Kurdish oil into the global market, with anticipated export volumes poised to increase to approximately 230,000 bpd in the future. The Kurdish oil resurgence aligns with OPEC+ initiatives to increase production and capture greater market share. Industry reports suggest that the group is set to approve an additional production increase of at least 137,000 bpd during its upcoming meeting this week. Simultaneously, the potential risks to Russian oil supply remain a concern, as Ukrainian attacks on Russian energy infrastructure persist.