Oil prices extended their slide during Tuesday's Asian trade, falling for a fifth consecutive session after Iraq’s federal and Kurdish regional governments reached a preliminary deal to restart a key crude pipeline.
By 3:15 pm AEST (5:15 am GMT) Brent crude futures fell 37 cents, or 0.6%, to US$66.20 per barrel, while U.S. West Texas Intermediate (WTI) lost 34 cents, or 0.6%, to $61.94.
Both benchmarks have now declined around 3.4% over the past five sessions.
The agreement, confirmed by two oil officials, will allow exports of about 230,000 barrels per day to resume from Iraqi Kurdistan through Turkey, ending a suspension in place since March 2023.
The development added to concerns about rising supply at a time when demand is already under pressure.
Oil markets also remain sensitive to geopolitical risks, with traders watching potential new European Union sanctions on Russian crude and any escalation of tensions in the Middle East.
Elsewhere, Saudi Arabia’s crude exports fell in July to their lowest level in four months, data from the Joint Organizations Data Initiative showed.
Iraq, OPEC’s second-largest producer, has meanwhile raised shipments under the group’s supply pact, according to state marketer SOMO.