Oil prices fell on Thursday, pressured by prospects of crude export resumption from Iraq’s Kurdish Regional Government (KRG), while a surprise draw in US inventories curbed deeper losses.
Brent crude was trading at $68.26 per barrel at 9.30 a.m. local time (0630 GMT), down 0.13% from the previous close of $68.35.
US benchmark West Texas Intermediate (WTI) decreased by 0.12% to $64.58 from $64.66 in the prior session.
The KRG’s Ministry of Natural Resources said it had met all requirements to restart flows and reached agreements with domestic and foreign firms except one, stressing the refusal of a single company would not block exports. The ministry added it is awaiting Baghdad’s approval to resume shipments.
On March 25, 2023, a Paris-based international arbitration court ordered the suspension of crude exports from the KRG and Kirkuk via Türkiye's Ceyhan port after a lawsuit filed by Iraq's federal government.
KRG Prime Minister Masrour Barzani had criticized the suspension of exports through Ceyhan in a June 25 statement, saying the halt was due to Baghdad's legal action.
Analysts said ongoing concerns over supply glut and demand uncertainty continue to weigh on markets, while the potential restart of the KRG pipeline adds downward pressure on prices.
- Draw in US crude stocks limits losses
Meanwhile, data showing a surprise decline in US crude stocks signaled rising demand in the world's largest oil consumer, providing support for prices.
US commercial crude oil inventories fell by about 600,000 barrels to 414.8 million barrels last week, according to data from the Energy Information Administration (EIA). Markets had expected an increase of around 800,000 barrels.
During the same period, US gasoline inventories dropped by around 1.1 million barrels to 216.6 million barrels.
Daniel Hynes, senior commodity strategist at Australia and New Zealand Banking Group, noted that with a second consecutive weekly decline, US inventories had fallen to their lowest level since January, also highlighting the drawdown in gasoline and refined products.
By Humeyra Ayaz
Anadolu Agency
energy@aa.com.tr
