bubbles chemistry close up color

Oil Price Rise as lraq Suspends Kurdistan Oil Expoets

Oil prices closed higher on Tuesday following news that Iraq has halted some oil exports from the Kurdistan region, leading investors to anticipate tighter global oil supply conditions. WTI crude futures rose 0.5% to $73.20 a barrel, while the Brent crude contract rose 0.7% to $78.65 a barrel on the back of the news.

The decision to suspend oil exports of around 450,000 barrels per day from the Kurdistan region via Turkey followed an arbitration court ruling affirming that such exports must receive approval from the Iraqi government. Analysts predict prolonged suspension of oil exports could lead to Brent oil prices for 2023 rising by $3 to $92 per barrel.

Tuesday’s rise in oil prices was supported by investor concerns over the US banking sector, after First Citizens Bank’s acquisition of Silicon Valley Bank (SVB). Additionally, the weakness of the dollar has helped dollar-priced crude oil futures rise, making it more attractive to investors holding other currencies.

China added to bullish sentiment, with a forecast from its National Petroleum Corp. research unit predicting a 6.2% increase in the country’s crude oil imports to 540 million tonnes in 2023.

Investors are now awaiting the weekly US crude stock report from the US Energy Information Administration, due to be released on Tuesday evening. Analysts expect that crude oil inventories will rise by 200,000 barrels.

Leave a Reply

%d bloggers like this: