Oil prices continued to fall, marking the fifth straight session of decline. The drop came after Iraq and the Kurdistan Regional Government (KRG) reached a preliminary deal to restart pipeline exports, raising concerns about oversupply in the global market.
Brent crude futures slipped 42 cents, or 0.63%, to $66.15 a barrel by 0332 GMT. At the same time, U.S. West Texas Intermediate fell 36 cents, or 0.58%, to $61.92 a barrel. Both benchmarks are now down by 4% over the past five sessions.
Analysts link the oil prices fall to both rising supply and weak demand expectations. “The prevailing theme is still concerns on oversupply, while demand outlook is uncertain as we approach the year-end period. The restart of the KRG pipeline has also been putting pressure on prices,” said Anh Pham, senior analyst at LSEG.
The Iraq–Kurdistan pipeline deal will allow around 230,000 barrels per day (bpd) to flow through Turkey. These exports have been halted since March 2023, when an arbitration ruling forced a suspension. The restart could add significant volumes to global supply, amplifying downward pressure on oil prices.
At the same time, global demand outlook remains fragile. The International Energy Agency (IEA) recently forecast faster supply growth this year. It warned that a surplus could expand further by 2026 as OPEC+ members raise output and non-OPEC producers boost capacity.
Market risks, however, still persist. Traders are watching the European Union’s push for stricter sanctions on Russian crude. Geopolitical tensions in the Middle East also remain a threat to supply stability.
In the U.S., crude inventories likely rose last week, while gasoline and distillate stocks may have fallen, according to a Reuters poll. Meanwhile, Saudi Arabia’s crude exports fell in July to their lowest in four months, data from JODI showed.
Despite these shifts, Iraq, OPEC’s second-largest producer, continues to expand exports under its OPEC+ commitments. The Iraq–Kurdistan pipeline deal reflects this push and has become a key factor weighing on oil prices in global trade.