Baghdad, Iraq- Oil prices fell in Asian markets on Monday, extending losses from the previous week, as expectations of resumed exports from Kurdistan’s oilfields weighed on the market. Investors also awaited further developments in negotiations related to the ongoing Russia-Ukraine conflict.
Brent crude futures dropped by 14 cents, or 0.2%, reaching $74.29 per barrel by 0441 GMT, while US West Texas Intermediate (WTI) crude declined by 22 cents, or 0.3%, to $70.18 per barrel. Both benchmarks had already lost more than $2 on Friday, with Brent registering a weekly decline of 0.4% and WTI falling by 0.5%.
Analysts attribute the recent decline in crude oil prices to growing pressure on Iraq to restart oil exports from Kurdistan, a move that could help stabilize global supply after nearly two years of disruptions. According to an Iraqi oil ministry official, the country plans to export 185,000 barrels per day through the Iraq-Turkiye pipeline once operations resume. The oil ministry has confirmed that all necessary procedures have been completed to facilitate the resumption of exports, which could resolve a prolonged dispute affecting crude flows.
Meanwhile, attention remains focused on diplomatic efforts to end the Russia-Ukraine war, which has now entered its fourth year. European Union leaders are scheduled to hold an extraordinary summit on March 6 to discuss further aid for Ukraine and measures to strengthen European security. The discussions follow recent initiatives led by US President Donald Trump, who has engaged in talks with Russia regarding a potential resolution to the conflict, though Ukraine and the EU were not included in the initial negotiations. A senior Russian diplomat indicated that US and Russian representatives are expected to meet this week to discuss the broader relationship between the two nations.
Sanctions imposed by Western nations on Russian oil exports have significantly impacted global energy markets, disrupting seaborne supply routes. If a diplomatic breakthrough is achieved and restrictions on Russian oil are lifted, global energy supplies could see an increase, influencing future oil price trends.
In the Middle East, efforts to maintain a ceasefire between Israel and Hamas remain delicate. A Hamas official stated that discussions on further steps in the agreement are contingent on the release of Palestinian prisoners as previously agreed. While both sides have accused each other of violations since the truce began on January 19, the ceasefire has largely remained in place.
Analysts predict that geopolitical developments and policy decisions in the United States will continue to play a key role in shaping oil price movements in the near term.
