Oil prices continued their downward trend for a fifth consecutive session on Tuesday, as a preliminary deal between Iraq and Kurdish regional authorities to restart a major oil pipeline added pressure to already abundant global supply.
Brent crude futures fell 34 cents, or 0.51%, to $66.23 a barrel by 06:39 GMT, while U.S. West Texas Intermediate (WTI) crude slipped 29 cents, or 0.47%, to $61.99 a barrel. Over the past five sessions, Brent and WTI have dropped by 3% and 4%, respectively.
“The prevailing theme is still concerns on oversupply, while demand outlook is still uncertain as we approach year-end period. The restart of KRG pipeline has also been putting pressure on prices,” said Anh Pham, senior analyst at LSEG.
On Monday, officials confirmed that Iraq’s federal government and the Kurdish regional authorities reached an agreement with oil companies to resume exports via Turkey. The deal will allow roughly 230,000 barrels per day (bpd) from Iraqi Kurdistan, which have been halted since March 2023, to flow again.
The global oil market continues to face rising supply coupled with slowing demand, driven in part by the rapid expansion of electric vehicles and economic disruptions linked to U.S. tariffs. The International Energy Agency noted in its monthly report that world oil supply is expected to grow more rapidly this year, with surpluses potentially widening in 2026 as OPEC+ and non-OPEC production rises.
Risks remain elevated, with traders closely watching potential EU sanctions on Russian oil and any flare-ups in Middle East tensions.
In the U.S., crude inventories were projected to have increased last week, while gasoline and distillate stocks likely fell, according to a preliminary Reuters survey. Saudi Arabia’s crude exports in July dropped to a four-month low, according to the Joint Organisations Data Initiative (JODI). Meanwhile, Iraq—the second-largest OPEC oil producer—has stepped up exports under the OPEC+ accord, according to state oil marketer SOMO.
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