Iraq’s Basrah crude prices continued to decline for the third straight week, mirroring a broader downturn across global oil markets. The persistent slide reflects shifting market sentiment driven by easing geopolitical risks and changing investor expectations.
Basrah Heavy crude fell by $1.43, settling at $63.08 per barrel, recording a weekly loss of $3.49, or 5.53%. Meanwhile, Basrah Medium also dropped by the same daily amount, closing at $60.74 per barrel, representing a weekly decline of $4.02, or 6.21%. These losses mark the third straight week of negative performance for Iraq’s key export grades, both of which are vital to the country’s oil revenue.
The decline followed a sharp global sell-off in crude futures. Prices fell after risk premiums eased when US President Donald Trump and Russian President Vladimir Putin agreed to meet in Hungary to discuss potential steps toward ending the war in Ukraine. The diplomatic development reduced fears of prolonged supply disruptions and pushed international benchmarks such as Brent and WTI down by more than 3% by week’s end.
Market analysts noted that traders reacted quickly to signs of improved dialogue between major powers, expecting a possible stabilization of global energy flows. The easing of tensions also prompted hedge funds and institutional investors to unwind bullish positions built during recent geopolitical escalations.
Despite the recent drop, analysts believe Iraq’s crude exports remain resilient, supported by steady demand from Asian refiners. However, if global benchmarks continue to weaken, Baghdad may face revenue pressures that could complicate fiscal planning for the remainder of the year.
The ongoing volatility underscores the sensitivity of oil prices to geopolitical developments and investor sentiment. For Iraq, maintaining stable exports while managing budgetary expectations remains critical as global markets navigate uncertain conditions.