The Iraq-Türkiye oil pipeline reactivated, the upward trend in oil prices slows down

Iraq has resumed crude oil exports from the Kirkuk fields towards the Turkish port of Ceyhanwith the aim of decongesting the southern route which was blocked by the closure of the Strait of Hormuz following the outbreak of the conflict with Iran. This was reported by the main international and regional media from which we learn that the reactivation of flows, which began at 10:00 local timewas made possible by an agreement reached yesterday between the government of Baghdad and the Kurdistan Regional Government (KRG) to put end to a long period of interruption of exports from the northern region.

L’Iraq-Türkiye oil pipelinewhich connects ioil fieldsnorthern Iraqi KurdistanTürkiyelargely out of service for over a decade due to damage caused by theIslamic Stateand by several militant groups, it is capable of carrying yes 200,000 to 250,000 barrels per day.

Impact of Hormuz closure and Iraqi production

The closure of Hormuz had a drastic impact on theIraqi export capacityreducing flows from the southern terminals ofBasraat around 1.4 million barrels daily, compared to the 3.4 million recorded before the military escalation. Despite thequota OPECof the country is set at approximately 4.4 million barrels per day, theoverall productionwas forcibly reduced by approximately two thirds due to logistical and administrative difficultieswar crisiswhich also involvesIsrael e gli United States.

The reaction of the United States

US Ambassador to Turkey Tom Barrack expressed satisfaction with the agreement between Erbil and Baghdadcalling it a fundamental step to improve theprosperityof the region at a time ofinternational crisiswhich destabilized theenergy marketsle sea ​​routes e l’civil aviation.

Oil markets and future prospects

The news of the recovery of exports on international markets counterbalanced that ofattack on Asaluyeh state refineriesin the southern Iranian province of Bushehr, immediately influencing theoil prices: il Brentfell to $101.16 a barrel, while U.S. crudeWTIrecorded a decline of more than 3 percent, settling at around 92.2 dollars. Analysts underline, however, that the volumes coming from northern Iraq will only be able to partially offset the fears related toglobal suppliesas long as hostilities continue in the areaGulf.