West Texas Intermediate (WTI) oil price rose to approximately $70.30 per barrel during Asian trading on Monday. However, prices faced pressure due to anticipated exports resuming from Kurdistan’s oilfields.
An official from Iraq’s Oil ministry stated plans to export 185,000 barrels per day via the Iraq-Turkey pipeline have progressed, with all preparations completed. Traders are also monitoring developments regarding the conflict between Russia and Ukraine, which is in its fourth year.
A senior Russian diplomat mentioned meetings between Russian and US teams to discuss improving relations. This follows a push from US leadership to initiate dialogue with Russia.
Potential changes in US trade policy are under scrutiny as recent tariff announcements could affect crude oil prices. President Trump signed a memorandum to restrict Chinese investments in key sectors.
Market participants await the release of the Personal Consumption Expenditures (PCE) index on Friday, a key inflation measure affecting future interest rate decisions by the Federal Reserve.
The rise in WTI crude oil prices to approximately $70.30 per barrel during Asian trading reflects a mix of bullish sentiment and external pressures. However, gains are being challenged by expectations that oil exports from Kurdistan will resume.
Hassan at Iraq’s Oil Ministry has confirmed that the country is prepared to export 185,000 barrels per day through the Iraq-Turkey pipeline. The infrastructure is ready, paperwork is in order, and it now seems to be a matter of time before flows restart. For traders, this introduction of additional supply could limit upward price movement, especially if global demand remains steady.
Meanwhile, the prolonged conflict in Eastern Europe remains something we cannot ignore. It has influenced supply chains and driven market volatility since it first began, and with the conflict now in its fourth year, traders are still factoring in potential disruptions. Dmitry, a senior Russian diplomat, has acknowledged that officials from Washington and Moscow have been meeting to discuss ways to mend relations. This development comes amid US efforts to restart diplomatic discussions, but traders will be looking for concrete agreements that could influence sanctions or energy policies.
Another factor that could sway the market is the shifting trade policy in the US. Recent decisions on tariffs may carry consequences for crude oil demand, particularly if they affect industrial production or consumer spending down the line. Donald has signed a memorandum with the goal of limiting Chinese investments in certain sectors deemed critical to US interests. Should tensions escalate, we may see further reaction in commodity markets, particularly those sensitive to global trade dynamics.
Later this week, attention will turn to Friday’s release of the Personal Consumption Expenditures (PCE) index. This is the Federal Reserve’s preferred inflation measure, and its results will be key in shaping expectations for future interest rate moves. If inflation remains high, we could see further rate hikes from policymakers, which may impact energy prices by altering demand expectations. Those trading derivatives will want to be mindful, particularly as shifts in interest rate projections can quickly filter through to broader market sentiment.
