Oil continued to rise after the interruption in Iraq’s oil exports to Turkey due to a disagreement with the Kurdish Regional Government and an industry report in the US pointing to a decline in inventories.
Brent oil traded above $79, while US crude oil rose above $74. Two-week highs were seen on both indicators.
Oil finds support with resurgent demand and supply risks after China eased its pandemic measures. On the other hand, the uncertainty experienced after the banking crisis, which affected institutions both in the USA and Europe, continues to affect the market.
Experts pointed out that supply risks continue to support oil prices, and called for the US, Iraq and Turkey to help restart exports, tighten the market and boost prices by ending the dispute that has halted shipments of around 400,000 barrels per day.
Norwegian DNO ASA, one of the biggest oil producers of the Iraqi Kurdish Regional Government, reduced its production after the conflict continued.
On the other hand, the American Petroleum Institute reported that crude oil stocks fell by 6.1 million barrels in a report released on Tuesday, and if this figure is supported by official data, it will be the biggest drop since November.
The previous report revealed that US stocks were at their highest level since May 2021.
However, both benchmark oil prices are expected to close this month with losses as a possible US recession and Russian production remain strong.
In addition, OPEC+ made no signs of a change in production at next week’s Joint Ministerial Monitoring Committee.