Oil prices dip as Iraq and Kurdistan resume exports via Turkey

Wednesday 18 March 2026 - 10:20

By: Dakir Madiha

Oil prices dip as Iraq and Kurdistan resume exports via Turkey

Global oil prices declined on Wednesday after Iraq and Kurdish authorities agreed to restart crude exports through Turkey’s port of Ceyhan, offering limited relief to a market strained by weeks of supply disruptions linked to the Middle East conflict.

Brent crude futures fell about 2.2 percent to around 101 dollars per barrel, while US West Texas Intermediate dropped roughly 3.1 percent. Despite the decline, prices remain elevated after rising more than 40 percent over the past month.

Iraq’s oil minister, Hayan Abdel-Ghani, said flows from Ceyhan would resume on Wednesday. The Kurdistan Regional Government confirmed that around 250,000 barrels per day would begin moving from Kirkuk oil fields through its pipeline network. Prime Minister Masrour Barzani said the region would allow exports to restart as quickly as possible, citing exceptional national circumstances.

However, the resumed volume represents only about 6 percent of Iraq’s total oil exports. Analysts said the additional supply provided short term relief but does not significantly change market fundamentals. “Any additional barrels returning to the market are valuable, which explains the price reaction,” said an analyst at LSEG, noting that oil remains near 100 dollars per barrel amid persistent uncertainty.

The Strait of Hormuz continues to dominate market concerns. The key shipping route, which typically carries about one fifth of global oil supply, has been effectively closed after Iran restricted vessel access following US and Israeli strikes that began on February 28. Oil output from southern Iraq has dropped by about 70 percent, falling to roughly 1.3 million barrels per day as a result.

Iran’s leadership has signaled no intention to reopen the strait, with officials rejecting de escalation proposals. This has reinforced expectations that supply constraints will persist in the near term.

Additional downward pressure came from US inventory data. The American Petroleum Institute reported a 6.56 million barrel increase in crude stockpiles for the week ending March 13, sharply exceeding expectations for a decline. The build reversed a 1.7 million barrel draw the previous week, adding to bearish sentiment ahead of official data from the Energy Information Administration.

Analysts say that while the restart of Iraqi exports and rising US inventories have weighed on prices, the broader geopolitical crisis continues to support oil above 100 dollars per barrel.