Oil prices remain high as Iraq-Kurdistan tensions halt exports

Oil held its highs as tensions between Iraq and the Kurdistan region halted exports, while expectations for the fallout from the banking crisis dampened.

West Texas Intermediate futures climbed to nearly $73 per barrel on Monday, following a 4.8% surge after recently dipping. A legal disagreement between Iraq, Kurdistan and Turkey has halted the production of approximately 400,000 barrels of oil daily.

Oil remains on track to decline amid fears over a potential US recession and steady Russian energy flows. Most market experts still believe China’s economic recovery will accelerate, pushing up prices later this year as demand increases.

Investors will be watching statements from the US Federal Reserve, as well as a key measure of US inflation due this week, for the path of monetary policy.

OPEC+ and Russian news

The OPEC+ coalition showed no signs of adjusting oil output when it meets next week, staying the course amid volatility in financial markets.

Russian oil sales to India rose 22-fold last year as European consumers turned to other markets after the war in Ukraine. Last year, Russia shifted its oil exports to India and China as EU countries tried to reduce their dependence on Russian energy supplies.

The EU has imposed an embargo on Russian seaborne oil and a price cap on Russian crude.

Energy revenues would account for 42 per cent of Russia’s federal budget in 2022, and the country’s energy industry would be sustainable despite challenges from Western sanctions.

Russia cut crude oil production by 500,000 barrels this month.