Iraq stops exporting regarding 450,000 barrels per day from the Kurdistan region
Oil prices rose for a third day in early Asian trade today, Wednesday, as the suspension of some exports from Iraqi Kurdistan raised concern regarding tight supply, and market sentiment improved with calming fears of a banking crisis.
Brent crude futures rose 23 cents, or 0.29%, to $78.88 a barrel, by 04:25 GMT. US West Texas Intermediate crude rose 45 cents, or 0.61%, to $73.65 a barrel.
“Investors’ appetite for risk is still supported by concerns regarding the scarcity of supplies in the Kurdistan region of Iraq and relief in financial markets worried regarding the banking sector turmoil,” said commodities analyst at Rakuten Securities, Satoru Yoshida.
Oil prices rose following Iraq was forced to stop exporting regarding 450,000 barrels per day from the northern Iraqi Kurdistan region via Turkey, following a ruling in an arbitration case confirmed that Baghdad’s approval was necessary to ship the oil.
First Citizens Bankers’ announcement on Monday that it would take over the deposits and loans of the collapsed Silicon Valley Bank sparked optimism regarding the state of the banking sector.
Prices were also supported by a drawdown in US crude oil inventories last week.
Market sources referred to figures released by the American Petroleum Institute on Tuesday, saying that US crude oil inventories fell by regarding 6.1 million barrels in the week ending March 24.
Gasoline stocks fell by regarding 5.9 million barrels, while distillate stocks rose by regarding 550 thousand barrels.