Iraq and Kurdistan strike deal to restart oil exports via Türkiye

According to Iraq’s Oil Minister Hayyan Abdul-Ghani, shipments will resume on Wednesday at 10:00 local time. Meanwhile, the Kurdistan government also confirmed the resumption of exports.

Bloomberg explains that the pipeline, which carries oil from fields in Kurdistan and Kirkuk to the Turkish Mediterranean port of Ceyhan, is located far from the conflict-affected Persian Gulf. Shipments through it were halted in early March as part of a series of precautionary measures.

Earlier, Abdul-Ghani stated that Iraq is capable of shipping at least 150,000–200,000 barrels of oil per day from Kirkuk, as well as 210,000 barrels per day from Kurdistan via the northern pipeline.

Currently, oil production in Iraq stands at 1.3–1.4 million barrels per day, which is less than the 4.3 million barrels per day produced before the closure of the Strait of Hormuz.

What preceded this

In March of this year, the global oil market was shaken by the US and Israeli war against Iran.

In response, Tehran attacked energy facilities across the Middle East and blocked traffic through the Strait of Hormuz. This, in turn, forced producers, including Iraq, to halt production of millions of barrels of oil, leading to rising prices and causing a scramble among importers seeking supplies.

As of March 16, the price of Russian oil for India reached its highest level since the start of the Middle East conflict. In particular, Urals crude delivered to the country’s west coast reached $98.93 per barrel. However, as Reuters notes, despite the price spike, Russia’s oil revenues will fall compared to last year.

Not only India, but China is preparing, after a four-month pause, to resume buying Russian oil, against which the US has temporarily eased sanctions.