WTI Oil Faces Downside Risks Amid Kurdistan Export Resumption

WTI crude oil is facing pressure as it hovers around $70.30 per barrel during trading in Asia.

Concerns about a potential surplus in supply have emerged due to the anticipated resumption of oil exports from Kurdistan. Iraq’s Oil Ministry has announced plans to export 185,000 barrels per day via the Iraq-Turkey pipeline, which could impact market dynamics.

An Iraqi oil industry official stated that all necessary export procedures have been completed paving the way for shipments to recommence soon. This development comes amid ongoing geopolitical tensions, particularly with the Russia-Ukraine conflict now in its fourth year. European Union leaders are set to meet on March 6 to discuss aid for Ukraine, adding a layer of uncertainty for investors awaiting further updates.

Traders are monitoring not just geopolitical risks but also U.S. trade policies, specifically potential tariff actions, which could affect market trends and commodity prices.

Additionally, investors are anticipating the release of the U.S. Personal Consumption Expenditures (PCE) index, the Federal Reserve’s preferred measure of inflation scheduled for publication this Friday. This data could influence interest rate decisions and, in turn, affect market sentiment and energy prices.

Given the current supply outlook and constant geopolitical shifts, WTI crude oil prices remain at risk of declining. Therefore, traders must stay vigilant regarding any changes in supply dynamics and macroeconomic trends that could impact market direction.