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WTI crude oil for November delivery was last seen trading at $ 2.50 (or 3.80%) to $ 63.22 per barrel.
Following a deadlock of nearly two and a half years on technical and legal issues, Iraq has re-resumed crude oil exports from semi-autonomous Kurdistan region after an interim agreement. Eight oil companies and Kurdish authorities signing the deal have allegedly held a meeting to reach a mechanism to be dues of $ 1 billion Kurdistan in the next 30 days.
Iraq’s oil minister said the agreement between the federal government of Iraq, Kurdistan Regional Government (KRG) and foreign oil producers working in the region would allow 180,000 to 190,000 barrels per day at the raw port for flow to Sehan Port in Turkey.
This restarted, apparently pushed by the US, is expected to bring about 230,000 BPD raw raw rawness to international markets.
Meanwhile, the OPEC+ member nations are meeting on Sundays, when they are likely to approve another increase in their raw production. The coalition is pumping about 500,000 BPD less than its goals, reducing the market concerns of a supply glut to some extent.
Last week, Ukraine conducted drone attacks, targeting Russian energy infrastructure, triggering Russia to curb oil exports, leading to a sharp increase in raw prices.
On Sunday, Russia launched around 600 drones and about 50 missiles in Ukraine. Ukraine’s President Volodimier Zelansky called the attack “Vile”, saying that the US has asked them to provide them with long distance missiles.
In the US, Trump is meeting today’s top Democratic and Republican leaders to discuss the means of expanding government funds. In the absence of an agreement, a partial shutdown will begin in the US from 1 October, which will cripple almost all major essential services to citizens.
Economic uncertainty continues, last week Trump added another round of pharmaceutical imports, furniture and tariffs targeting trucks. These levy are ready to be effective from Wednesday.
It comes in a scenario where the validity of “mutual tariff” is set by the US Supreme Court in the coming months.
While a smooth global business landscape increases the demand for oil and energy and supports crude oil prices on the reverse, but the business leaves the result of uncertainty in the opposite direction.
The idea and opinion expressed here are the idea and opinion of the author and not necessarily Nasdac, Inc.
