WTI Nears $70.00, Downside Risks Amid Potential Exports from Kurdistan Oilfields
The WTI price is hovering around $70.30 per barrel during Asian trading hours on Monday, with a potential decline expected due to the resumption of oil exports from Kurdistan’s oilfields.
- The price has been under downward pressure due to export expectations from the Kurdistan region.
- These expectations come as Iraq’s Oil Ministry confirmed plans to export 185,000 barrels per day (bpd) via the Iraq-Turkey pipeline.
On Sunday, Reuters reported that Iraq had completed all necessary procedures to restart the Kurdistan exports, which are expected to contribute to market supply.
- This development could ease supply concerns, potentially driving prices lower.
While traders are focused on these developments, other global events are also influencing the market. The ongoing Russia-Ukraine conflict is into its fourth year, with significant geopolitical implications.
- EU leaders will meet on March 6 to discuss additional support for Ukraine and European security assurances.
- A Russian diplomat indicated that Russia and the US will meet this week to discuss strengthening bilateral relations, which could have global ramifications.
Meanwhile, concerns about US trade policy also weigh on the market. The possibility of further tariff announcements by President Trump could heighten global trade tensions, applying more downward pressure on crude oil prices.
- Trump recently signed a memo to restrict Chinese investments in strategic sectors, which may further disrupt trade dynamics.
Investors are also closely monitoring upcoming economic data. The release of the Personal Consumption Expenditures (PCE) index on Friday will be key in assessing future US interest rate decisions by the Federal Reserve.
- This measure of inflation could provide insight into potential shifts in monetary policy, influencing market sentiment and oil prices.
