Iraq Plans to Resume Oil Exports via Turkey Shortly

Iraq is set to resume oil exports from its Kurdistan region through the Iraq-Turkey pipeline, with an initial volume of 185,000 barrels per day, according to the Iraqi oil ministry. This decision follows a period of halted exports since March 2023 due to a payment dispute between Iraq and Turkey, which resulted in significant economic losses for Iraq. The U.S. has been actively involved in discussions, with Secretary of State Marco Rubio and Iraqi Prime Minister Mohammed Shia Al-Sudani emphasizing the urgency of reopening the pipeline to promote energy independence and reduce Iranian influence in the region. The Iraqi government has resolved its dispute with Kurdish authorities, allowing for the resumption of exports under the state oil marketer SOMO. However, there are still uncertainties regarding commercial agreements with international oil firms operating in the area. The resumption of exports is expected to have implications for global oil prices, which have already been affected by the potential increase in supply.