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Economy ME
4 days ago
- Business
- Economy ME
Crude oil prices drop 0.75 percent to $68.60 amid rising trade tensions, demand concerns
Oil prices declined on Tuesday amid rising concerns that the escalating trade conflict between major crude consumers, the U.S. and the European Union, could hinder fuel demand growth by stifling economic activity, which has negatively impacted investor sentiment. Brent crude futures saw a decrease of 52 cents, or 0.75 percent, settling at $68.69 a barrel by 03:25 GMT (currently trading above $68.60). Meanwhile, U.S. West Texas Intermediate crude was priced at $66.69 a barrel, down 51 cents, or 0.76 percent (currently trading above $65.35). Both benchmarks experienced a slight decline on Monday. The August WTI contract is set to expire on Tuesday, with the more actively traded September contract dropping 54 cents, or 0.82 percent, to $65.41 a barrel. Supply concerns eased Supply concerns have largely diminished, thanks to major producers ramping up output and the ceasefire established on June 24, which ended the hostilities between Israel and Iran. However, apprehensions regarding the global economy are growing amid shifts in U.S. trade policy. In a significant development, the Iraqi government has officially resumed crude oil exports from the Kurdistan Region after a halt lasting over two years. This move is anticipated to ease tensions between Baghdad and Erbil while enhancing national export volumes. Kurdistan aims to contribute 230,000 barrels per day (bpd) of crude to Iraq's market once exports are fully operational. The prospect of increased crude exports from Iraq may augment global oil supplies and exert downward pressure on WTI prices in the short term. Furthermore, the impending U.S. tariff deadline could also affect WTI prices. U.S. tariffs on EU imports are expected to take effect on August 1, raising trade anxieties that extend beyond the oil sector. Commerce Secretary Howard Lutnick expressed optimism about reaching an agreement with the EU, yet the ongoing tariff risks continue to limit crude's potential for price increases. Read more: Oil prices climb to $69.36 as new EU sanctions hit Russian oil supplies Support from a weaker dollar The European Union's measures regarding Russian crude supply may lend some support to oil prices. Last week, the EU approved the 18th package of sanctions against Russia due to its conflict in Ukraine, which also targeted India's Nayara Energy, an exporter of oil products refined from Russian crude. This action followed U.S. President Donald Trump's threats to impose sanctions on buyers of Russian exports unless a peace deal is negotiated within 50 days. A weaker U.S. dollar has provided some support for crude prices, as buyers using alternative currencies are finding it relatively less expensive. The EU is also contemplating a wider array of counter-measures against the United States, as the chances of a favorable trade agreement with Washington continue to diminish, according to EU diplomats. The U.S. has threatened to implement a 30 percent tariff on EU imports come August 1 if no agreement is reached. Additionally, there are indications that the rising oil supply is beginning to saturate the market, as the Organization of the Petroleum Exporting Countries and their allies begin to unwind their output cuts. Data from the Joint Organizations Data Initiative (JODI) revealed that Saudi Arabia's crude oil exports in May surged to their highest level in three months.
Al Arabiya
17-07-2025
- Business
- Al Arabiya
Baghdad and Erbil agree to resume Kurdish oil exports: Government
The Iraqi government announced Thursday an agreement to resume crude exports from the autonomous Kurdistan region after a more than two-year halt and amid drone attacks on oil fields. Lucrative oil exports have been a major point of tension between Baghdad and Erbil, with a key pipeline through Turkey shut since 2023 over legal disputes and technical issues. The Kurdistan regional government shall 'immediately begin delivering all oil produced' in the region's field to Baghdad's State Oil Marketing Organization (SOMO) 'for export,' the Iraqi government said in a statement. The quantity should be no less than 230,000 barrels per day, and Baghdad will pay an advance of $16 a barrel. The Kurdistan regional government said in a statement it 'welcomes' the deal, and hoped all agreements would be respected. Oil exports were previously independently sold by the Kurdistan region, without the approval or oversight of the central administration in Baghdad, through the port of Ceyhan in Turkey. But the region's official oil exports have been frozen since March 2023 when the arbitration tribunal of the International Chamber of Commerce in Paris ruled oil exports by the regional government illegal and said that Baghdad had the exclusive right to market all Iraqi oil. The decision halted the region's independent exports by pipeline via Turkey. Ever since, the federal and regional governments have been haggling over the production and transport costs payable to the region and its commercial partners among other financial issues. The latest agreement should also solve the long-standing issue of unpaid salaries for civil servants in Kurdistan, which has been tied to the tension over oil. The federal finance ministry will pay salaries for May once SOMO confirms it has received the oil at the Ceyhan port. The regional government said it hoped that the issue of salaries would be treated separately from any disputes. The deal comes after a tense few weeks in Kurdistan, which has seen a spate of unclaimed drone attacks mostly against oil fields, with the latest strike hitting a site operated by a Norwegian firm on Thursday morning -- the second attack in two days on the same site. There has been no claim of responsibility for any of the past week's attacks, and Baghdad has promised an investigation to identify the culprits.
Reuters
16-07-2025
- Business
- Reuters
Drone strikes shut oilfields in Iraq's Kurdistan due to infrastructure damage
BAGHDAD, July 16 (Reuters) - Several oilfields in Iraq's Kurdistan semi-autonomous region halted production as field infrastructure was significantly damaged, according to the regional government, following a third day of drone attacks on Wednesday. It was not certain who had carried out the attacks and no group has claimed responsibility for them. Gulf Keystone Petroleum (GKP.L), opens new tab said it had shut production at Shaikan field, one of the largest oil discoveries in the Iraq's Kurdistan region, due to attacks in the field's vicinity. "As a safety precaution, GKP has decided to temporarily shut-in production and has taken measures to protect staff. The company's assets have not been impacted," the company said in a statement. Gulf Keystone has a production sharing contract with Iraq's Kurdistan Regional Government (KRG) with an 80% working interest in the license of Shaikan, located around 60 kilometres (37 miles) to the northwest of capital Erbil. "A number of terrorist attacks were carried out by a bomb-dropping drone on the oil fields of Tawke, Peshkabour, and Ain Sifni in the independent administration of Zakho and the district of Shekhan in Duhok province," KRG's ministry of natural resources said. The attacks aimed to harm the economic infrastructure of the Kurdistan region and threaten the safety of civilian workers in the energy sector, the ministry said. Norwegian oil and gas firm DNO ( opens new tab, which operates the Tawke and Peshkabir oilfields in the Zakho area that borders Turkey, said it temporarily suspended production at the fields following explosions that caused no injuries. "The damage assessment is underway and the company expects to restart production once the assessment is completed," DNO said. DNO's shares fell around 5% after the attack and were poised to see their worst day since June 25. The fields were attacked by three bomb-laden drones, but there were no casualties, only material damage, Kurdistan's counter-terrorism service posted on Facebook. The Ain Sifni oilfield, operated by U.S.-based Hunt Oil, was also attacked later in the Dohuk region of northern Iraq. There were no further details on the attack. On Tuesday, a drone attack halted production at the Sarsang oilfield in Iraq's Kurdistan region hours before its U.S. operator signed a deal with Iraq to develop another field. Iraqi Kurdistan security sources said initial investigations suggested the drone came from areas under the control of Iran-backed militias. On Monday, two drones fell on the Khurmala oilfield near Erbil in Iraqi Kurdistan, damaging water pipes at the field.
Forbes
15-07-2025
- Politics
- Forbes
The Air Defenses Iraqi Kurdistan Can Realistically Hope To Receive
A Counter-Rocket, Artillery, and Mortar (C-RAM) system firing. Iraqi Kurdistan has once again found its territory, including its oilfields and main international airport in the capital, Erbil, targeted by explosive drones. These attacks again underscore the autonomous region's urgent need for air defense systems, which the United States has pledged to supply. However, it remains unclear what specific systems, if any, Erbil may ultimately receive. At 2:30 am local time Monday morning, an explosive drone was successfully intercepted near Erbil International Airport, according to a statement from Iraqi Kurdistan's Directorate General of Counter Terrorism. The interception did not cause casualties or material damage, the CTD statement added. Later the same. day, another drone attack damaged water pipelines at the Khurmala oilfield southwest of Erbil. Yet another drone attack targeting Iraqi Kurdistan's Sarsang oilfield resulted in a halt in production on Tuesday morning. These incidents mark the latest of several drone attacks carried out across Iraqi Kurdistan since the end of the 12-day Israel-Iran War in June. For example, CTD announced another attempted drone strike against Erbil airport on July 3, also intercepted swiftly without any casualties or damage, only temporarily delaying a single landing aircraft. Earlier that day, another drone crashed near the airport in Kirkuk, which was previously hit four days earlier with rockets in another unclaimed attack. The United States has a troop base on the grounds of Erbil airport protected by a close-range Counter-Rocket, Artillery, and Mortar, C-RAM, system. The U.S. also deployed at least one MIM-104 Patriot system, which intercepted an Iranian ballistic missile headed for Israel during Iran's then-unprecedented April 13, 2024, ballistic missile and drone attack. Elsewhere in Iraqi Kurdistan, Kurdish forces intercepted an unidentified drone approaching another base hosting U.S.-led coalition forces in the eastern Sulaymaniyah province on July 10. Earlier in the month, another two drones were shot down over the province. An explosive drone also crashed into an internally displaced persons camp in Kurdistan's western Duhok province on July 1, sparking a fire but fortunately causing no casualties. That camp hosts Yazidis uprooted from their homes by the infamous August 2014 genocide perpetrated by the Islamic State group. The Kurdistan Regional Government has officially blamed Iraq's Popular Mobilization Forces paramilitary for these attacks, an accusation Baghdad vehemently denies. Powerful Iran-backed elements in the PMF previously targeted U.S. bases in Iraqi Kurdistan with rockets and drones since 2020. Furthermore, uncovered debris from attacks on the Duhok camp, Sulaymaniyah, and Kirkuk matched components of Iranian-made Shahed-101 explosive drones. Since Congress passed the 2024 National Defense Authorization Act, which included a provision for equipping Iraqi Kurdistan's Peshmerga forces with air defenses, in December 2023, Erbil has hoped the U.S. will finally supply air defenses. Since Iraqi Kurdistan isn't an independent country, it cannot purchase such systems off the shelf like sovereign states can, and as Iraq is presently doing with its acquisition of advanced medium-range KM-SAM systems from South Korea. Consequently, Erbil finds itself dependent on America's goodwill, especially given Baghdad's consistent track record of not sharing any military hardware with Erbil. A provision of any air defenses would undoubtedly improve Erbil's almost non-existent surface-to-air capabilities against the present drone threat markedly. Nevertheless, there are most likely significant limits on what Washington will prove willing to provide. Alex Almeida, a security analyst at the energy consultancy Horizon Engage, doubts that high-end systems with anti-ballistic capabilities, such as the Patriot, will be on offer. Ditto for the NASAMS, a medium-range system that fires AIM-120 missiles. Almeida notes that Iraq will likely oppose any provision of such systems. Additionally, these systems are presently in high demand and short supply worldwide, especially the Patriots. The C-RAM destroys incoming rocket and drone threats like the ones Iraqi Kurdistan has intermittently faced throughout the past five years by firing its 20 mm high-explosive incendiary tracer, self-destruction, HEIT-SD, rounds in rapid succession. Almeida doubts Erbil will acquire any of these either. 'It's a fairly complex system that's only been exported to a limited number of countries,' he told me. 'The U.S. has also been hesitant about using the C-RAM systems it has in place at Erbil due to the airport's proximity to built-up areas, including numerous high-rise towers.' 'The Iraqi government has also been very sensitive about U.S. transfers of heavier weapons like large-caliber artillery to the KRG.' Iraqi officials strongly criticized a U.S. transfer of lightweight 105 mm M119 howitzers to Erbil for use by the Peshmerga in August 2024, with some calling for confiscating these weapons, underscoring Baghdad's sensitivities to Kurdish forces possessing even basic weapons. A more cost-effective provision for the U.S. may come in the form of the Advanced Precision Kill Weapon System, or APKWS. The APKWS is an unguided Hydra 70 rocket converted into a precision-guided munition using a laser-guidance kit. It costs a little over $20,000 per unit and has proven effective against the types of drones continuously harassing Iraqi Kurdistan. The U.S. has adopted an air-to-air version for F-16 fighter jets and even the A-10 Thunderbolt II ground attack aircraft, as it is a fraction of the cost of countering drones compared to traditional air-to-air missiles. Saudi Arabia, which has also faced Iran-backed drone threats, recently ordered them for its air force. The APKWS could give Iraqi Kurdistan an independent and cost-effective solution against drone threats and may not provoke as strong a reaction from Baghdad as the transfer of more advanced systems undoubtedly would. 'Something like the ground-based APKWS that's a more basic and rugged system, or the Coyote counter-drone missile, is a more realistic option and would probably be equally effective and more suitable for use near urban environments,' Almeida said. 'Those combined with electronic jammers and hand-held systems are probably a better bet and would be sufficient to handle the militia drone threat to Iraqi Kurdistan.'
Al Bawaba
15-07-2025
- Politics
- Al Bawaba
Iraqi presidency condemns drone strikes on northern oil fields, demands accountability
ALBAWABA- The Iraqi Presidency has strongly condemned recent drone attacks targeting key oil installations in northern Iraq, including the Khormala and Sarsank oil fields, and called for swift investigations to identify and hold those responsible. Also Read Explosion at Sarsang oil field in Iraqi Kurdistan halts production The condemnation follows two separate drone strikes: one on the Sarsank oil field in the Amadiya district of Dohuk governorate, which led to a suspension of production, and another on the strategic Khormala oil field in the Makhmour district of Erbil governorate. According to Iraqi security sources and the Kurdistan Region's Counter-Terrorism Service, the Khormala site was struck by two unidentified drones. While no casualties have been reported, the attacks have raised serious concerns over the security of Iraq's vital energy infrastructure. The Khormala field, which produces approximately 100,000 barrels of oil per day, is regarded as an extension of the Kirkuk oil field and lies outside the officially recognized boundaries of the Kurdistan Region as of March 19, 2003. The Iraqi Presidency emphasized that the site remains part of the Kirkuk governorate and does not fall within the jurisdiction of the Kurdistan Regional Government (KRG). In its official statement, the Presidency criticized the ongoing control and operation of the Khormala field by the Kar Kar Group, alleging that oil from the site is being exported without Baghdad's consent, labeling such activities as "illegal exploitation." The Presidency urged immediate action to 'expose and prosecute those behind the attacks' and to protect national resources from external threats and internal mismanagement. The drone strikes come amid ongoing tensions between Baghdad and Erbil over the management and distribution of oil revenues, particularly in contested areas outside the Kurdistan Region's formal boundaries.
