Oil prices experienced a decline of nearly 1% on Monday, following the resumption of crude oil exports from Iraq’s Kurdistan region through Turkey over the weekend, alongside OPEC+’s intentions to implement an additional oil output increase in November, thereby contributing to global supply levels. Brent crude futures experienced a decline of 63 cents, equivalent to 0.90%, reaching $69.50 a barrel by 0023, following a settlement at the highest level since July 31 on Friday. U.S. West Texas Intermediate crude was priced at $65.07 a barrel, reflecting a decrease of 65 cents, or 0.99%, thereby relinquishing a significant portion of Friday’s advances.

“Ongoing fears of production increase are limiting gains, but a tight near-term outlook has crude prices in a vice as the trading week begins,” stated Michael McCarthy. On Saturday, crude oil commenced its flow through a pipeline from the semi-autonomous Kurdistan region in northern Iraq to Turkey for the first time in two and a half years, following an interim agreement that resolved a prolonged deadlock, according to Iraq’s oil ministry. The accord established among Iraq’s federal government, the Kurdistan regional government, and international oil companies active in the area is set to facilitate the transportation of 180,000 to 190,000 barrels of crude oil daily to Turkey’s Ceyhan port, as stated by Iraq’s oil minister in an interview.

The United States has advocated for a resumption, anticipated to ultimately reintroduce up to 230,000 barrels per day of crude into global markets, coinciding with OPEC+’s efforts to increase production in order to capture market share. The Organization of the Petroleum Exporting Countries and their allies, or OPEC+, is poised to approve an additional crude production increase of at least 137,000 bpd during its upcoming meeting on Sunday, driven by the upward momentum in oil prices that incentivizes the group to further reclaim market share. OPEC+ has been producing nearly 500,000 bpd below its targets, contrary to market anticipations of an oversupply.

Brent and WTI experienced an increase exceeding 4% last week, marking their most significant weekly gains since June, driven by Ukraine’s drone strikes on Russia’s energy infrastructure, which have curtailed the nation’s fuel exports. Russia launched a significant barrage on Kyiv and various regions of Ukraine early on Sunday, marking one of the most prolonged assaults on the capital since the onset of the full-scale conflict.