Oil prices ease as Iraq reaches export deal with Kurds

Oil prices retreated slightly on Wednesday as a new export agreement between authorities in Iraq and the Kurdish region offered some relief to a market rattled by Middle East instability. This development follows a period of significant gains driven by the ongoing conflict involving Iran, which has severely disrupted regional supplies. Brent futures fell 67 cents, or 0.65%, to $102.75 a barrel, while W&T Offshore, Inc. crude futures dropped $1.18, or 1.23%, to $95.03. Despite this dip, the iPath Pure Beta Crude Oil ETN remains sensitive to the fact that Brent has maintained a position above $100 per barrel for four consecutive sessions. The Iraqi oil minister, Hayan Abdel-Ghani, announced that flows through the Ceyhan port in Turkey were scheduled to commence early Wednesday. Officials indicated a goal of pumping at least 100,000 barrels per day (bpd) through the terminal. However, analysts suggest the impact may be limited. > "While it all helps and buys some time, the 100,000 bpd is not a huge game changer as Iraq has still lost about two million barrels per day," said IG market analyst Tony Sycamore. Production in southern Iraqi oilfields has plummeted by 70% to approximately 1.3 million bpd. This decline is largely attributed to the closure of the Strait of Hormuz, a critical maritime corridor for 20% of global oil. Regional tensions escalated following the death of Iranian security chief Ali Larijani in an Israeli strike. In response, the United States military conducted strikes against missile sites along the Iranian coastline. Mingyu Gao, chief researcher for energy and chemicals at China Futures in China, noted that these military actions have sparked mixed reactions regarding the potential duration of the conflict. Adding to the downward pressure on prices, industry data from the United States showed a significant build in crude inventories. According to figures cited by market sources in Singapore, stockpiles rose by 6.56 million barrels for the week ended March 13, far exceeding analyst expectations of a 380,000-barrel increase.