Oil Prices Drop Due to Resumption of Exports from Kurdistan and Anticipated Increase in OPEC+ Production

Global oil prices fell on Monday after the Iraqi region of Kurdistan resumed oil shipments to Turkey, while OPEC+ countries prepare to increase production volumes in November.

This is reported by AgroReview

Resumption of Oil Exports from Kurdistan

For the first time in two and a half years, oil from the semi-autonomous region of Kurdistan has started flowing again through the pipeline to Turkey. The Iraqi Ministry of Oil reported that this was made possible by a temporary agreement that helped resolve a long-standing dispute between the parties. According to Iraq’s Minister of Oil, the agreement between the federal government, the Kurdistan regional government, and foreign companies allows for the daily transportation of between 180,000 and 190,000 barrels of oil to the Turkish port of Ceyhan.

The U.S. supported the resumption of exports, and in the future, volumes could increase to 230,000 barrels per day. This comes as OPEC+ continues to ramp up production to strengthen its market position.

Oil Price Dynamics and OPEC+ Impact

November Brent crude futures lost 34 cents (0.5%), dropping to $69.79 per barrel. U.S. WTI fell by 43 cents (0.7%) to $65.29, nearly fully offsetting the increase recorded on Friday.

“Expectations of further production increases are limiting price growth, but short-term shortages keep the market tense,” noted Michael McCarthy, CEO of investment platform Moomoo Australia and New Zealand.

OPEC+ countries are likely to decide to increase production by at least 137,000 barrels per day at their Sunday meeting, according to three sources. This decision is a response to high prices, which encourage exporting countries to more actively reclaim their market share. At the same time, it is noted that OPEC+ is currently producing nearly 500,000 barrels per day less than target levels, which does not align with expectations of an oil surplus in the market.