OIL.WTI is under pressure today as Iraq’s federal government and the Kurdish regional government reached a breakthrough deal to restart crude oil exports through the key pipeline to Turkey, which has been shut since March 2023 due to a dispute over export revenues and legal rights. The initial agreement allows roughly 230,000 barrels per day to flow again, pending final sign-off from the Iraqi cabinet and settlement with the foreign oil operators (such as DNO and Genel Energy) over back payments. Technical preparations have already begun, and exports are expected to restart within 48 hours if no new delays emerge.
This supply restoration comes as OPEC nations are seeking to regain market share, and it adds to expectations for a heavier global oil surplus. Previous closures stemmed from arbitration–Turkey was ordered to pay Iraq $1.5 billion for unauthorized Kurdish exports, while further compensation negotiations remain ongoing.
The pipeline reopening is cited as a direct reason for oil’s continued declines at the start of this week, as traders factor in the renewed supply and its broader bearish implications for the market.
After a period of price fluctuations, WTI crude oil has resumed its overall downward trend following the resolution regarding the resumption of exports from Iraq and Kurdistan. The current price stands at $61.89 per barrel, marking a clear drop below key moving averages (EMA 50, 100, 200). The RSI indicator is at 42, indicating moderate selling pressure. Moreover, WTI is trading in the lower part of the range defined by the 14-session Bollinger Bands, which signals increased selling pressure and confirms the return to the overall downward trend. Source: xStation
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