Oil prices edged lower in early trading on Monday, extending last week’s declines, as markets reacted to the prospect of Kurdistan resuming oil exports. Investors also monitored geopolitical developments, including discussions on ending Russia’s war in Ukraine.
By 3:50 pm AEDT (4:50 am GMT) Brent crude futures slipped $0.13 or 0.2%, to US$74.30 per barrel, while United States West Texas Intermediate (WTI) crude fell $0.22 or 0.3%, to $70.18 per barrel.
ANZ analysts commented in a note to clients, "The uncertainty over (President Donald) Trump's trade and foreign policies are also increasing the uncertainty over the supply outlook. Adding to this were reports that as much as 30% of oil exports from a major Kazakh pipeline to the Black Sea may be halted after a Ukrainian drone attacked a pumping station in Russia. However, traders are also monitoring the possible return of several hundred thousand barrels a day of Iraqi crude flowing via Kurdistan."
On the supply front, Iraq is set to export 185,000 barrels per day from Kurdistan’s oilfields through the Iraq-Turkey pipeline once shipments resume, an Iraqi oil ministry official confirmed.
The ministry stated that all necessary procedures have been completed, signalling a potential resolution to a nearly two-year dispute that has disrupted crude flows.
Meanwhile, attention remains on diplomatic efforts to end Russia’s war in Ukraine, as European Union leaders are set to meet on 6 March for an extraordinary summit to discuss additional support for Ukraine and European security assurances.
This follows Trump’s recent diplomatic outreach to Russia, excluding Ukraine and the EU from initial negotiations.
In the Middle East, ceasefire negotiations between Israel and Hamas remain ongoing, with both sides accusing each other of ceasefire violations since the truce began on 19 January, though it remains in effect.
