Oil prices hold gains on Iraqi oil field attacks, but set for weekly losses
Oil prices held steady in Asian trade on Friday after sharp gains fueled by drone attacks on Iraqi oil fields, while recent industry data pointing to sustained market tightness further lent support, News.az reports citing Investing.
As of 21:56 ET (01:56 GMT), Brent Oil Futures expiring in September were unchanged at $69.51 per barrel, while West Texas Intermediate (WTI) crude futures were also muted at $67.51 per barrel.
Prices rose more than 1.5% on Thursday, but were still headed for over-1% weekly losses, driven by U.S. President Donald Trump’s rhetoric against Russia.
Trump delayed action on Russia this week, easing speculation of imminent sanctions that had lifted prices late last week. Instead, he gave Russia a 50-day window to end the war in Ukraine.
Attacks on Iraqi oil fields sparked supply concerns
Iraq’s federal government announced a deal to resume crude exports from Iraqi Kurdistan to Turkey following a two-year halt, despite ongoing drone attacks that have shut down about half the region’s output.
Oil found support on Thursday on renewed threats of supply disruptions from continued drone strikes on Iraqi Kurdistan oil fields, reportedly by Iran-backed militias.
While the Kurdistan Regional Government has yet to confirm the plan, the move signals progress in talks between Baghdad and Erbil.
Prices supported amid signs of tightness
Data from the U.S. Energy Information Administration (EIA) this week showed that {{8849|U.S. crcrude oil inventories fell by 3.9 million barrels, larger than analysts’ expectations of a 1.8 million-barrel decrease, indicating tightening market conditions.
Oil prices rose nearly 3% last week as the International Energy Agency highlighted a tight prompt market.
Despite OPEC+’s higher-than-expected output hike, the world oil market may be tighter than it appears, the agency said last week, as refineries ramp up processing to meet summer travel demand.
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