Drone strikes in Iraqi Kurdistan disrupt oil output, lifting prices
Shafaq News - Singapore
Oil prices extended gains on Friday, underpinned by supply concerns following drone attacks on northern Iraqi oilfields and tight market fundamentals amid healthy summer demand.
Brent crude futures climbed 29 cents, or 0.40%, to $69.81 a barrel as of 0451 GMT, U.S. West Texas Intermediate crude futures advanced 27 cents, or 0.42%, to $67.81 a barrel.
Four days of drone attacks on oilfields in Iraqi Kurdistan that shut down half the region's output have supported prices, pushing both contracts up $1 on Thursday.
Additionally, seasonal travel demand has propped up the market. In the first two weeks of July, global oil demand has averaged 105.2 million barrels per day (bpd), up by 600,000 bpd from a year earlier and largely in line with forecast, JPMorgan analysts said in a research note.
"Crude prices have been broadly stable this week, with no significant moves as the impact of OPEC+ supply increases has been offset by strong seasonal demand in the U.S.," said LSEG's analyst Anh Pham.
U.S. crude inventories fell a larger-than-expected last week as exports rose, government data on Wednesday showed.
Demand in Asia also firmed as refineries came back from maintenance amid peak seasonal demand.
Near-term oil fundamentals are likely to remain supportive, with the market set to remain fairly tight through this quarter, before becoming better supplied from the last three months of the year, ING analysts said in a note on Friday.
Still, the uncertainty around U.S. tariff policy, which appears unlikely to be settled until after August 1, is weighing on the market. Plans by major oil producers to remove output cuts will also add to supply as the seasonal Northern Hemisphere summer demand ends. For this week, both Brent and WTI were down more than 1%.
Oil output in the semi-autonomous Kurdistan region has been slashed from about 280,000 bpd to between 140,000 bpd and 150,000 bpd, two energy officials said.
Officials pointed to Iran-backed militias as the likely source of attacks this week on the region's oilfields, although no group has claimed responsibility.
Despite the attack, Iraq's federal government said on Thursday that Iraqi Kurdistan will resume oil exports through a pipeline to Turkey after a two-year halt.
(Reuters)
Only the headline is edited by Shafaq News Agency
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Rudaw Net
4 hours ago
- Rudaw Net
UNAMI chief hopes Erbil-Baghdad financial deal holds
Also in Iraq MPs slam Baghdad for banning Kurdish in disputed areas Ali al-Gharbi: One of world's hottest places Iraq dismantles extremist group financing network Iraqi man remarries at age 92 A+ A- ERBIL, Kurdistan Region - Mohamed al-Hassan, head of the UN Assistance Mission for Iraq (UNAMI), said on Saturday he hopes the new agreement between Erbil and Baghdad will be a final settlement of long-running disputes over finances and oil. "God willing, it will be an agreement that ends all disputes and we won't return to this topic because it affects the rights of ordinary people in Iraq. I have a firm conviction that with the wisdom of Iraq's leaders, whether in Baghdad or Erbil or elsewhere, we hope for all the best," Hassan told Rudaw's Ziyad Ismail. Earlier this month, the federal and regional governments reached a new deal over finances and oil. Several similar deals have failed in the past. The Iraqi government approved the agreement during a cabinet meeting and subsequently resumed the disbursement of the salaries of the Kurdistan Regional Government's (KRG) civil servants. Tensions between Baghdad and Erbil escalated in late May when the federal finance ministry suspended transfers of funds, saying the KRG had exceeded its 12.67 percent share of the federal budget and failed to deliver oil to Iraq's State Oil Marketing Organization (SOMO). The freeze affected more than 1.2 million public sector employees in the Kurdistan Region. Iraq will hold parliamentary elections in November. The UNAMI chief said they have "a fundamental and active role in these elections. We call on Iraqis to be honest and trustworthy in their electoral decision." UNAMI's mission in Iraq will expire at the end of the year.
Shafaq News
4 hours ago
- Shafaq News
Iraq imports +18,000 Chinese vehicles in H1 2025
Shafaq News – Baghdad Iraq brought in over 18,000 vehicles from China during the first six months of 2025, up from 10,000 in the same period last year, the Iraq Future Foundation for Economic Studies and Consulting revealed on Saturday. Chinese auto exports to the Middle East jumped 65% in H1 2025, reaching more than 584,000 vehicles—up from 353,000 a year earlier. Export value rose to $7.7B from $4.5B, reflecting stronger demand and China's expanding foothold in regional markets. The United Arab Emirates was the top importer, receiving over 221,000 vehicles, more than double its 2024 total. Saudi Arabia followed with 123,000, while Turkiye brought in around 91,000. Jordan recorded the steepest growth, with imports surging 962% to more than 23,000—up from just 2,000 last year. Electric vehicles made up 10% of China's car exports to the region in H1 2025. The UAE led with 25,000 units, followed by Turkiye (20,000) and Jordan (15,000). Globally, China exported over 750,000 electric vehicles during the same period. Belgium ranked first worldwide, importing more than 100,000. The Foundation projects Chinese auto exports to the Middle East will surpass 1M by year's end, driven by accelerating demand and competitively priced EVs.
Shafaq News
6 hours ago
- Shafaq News
Beijing pushes for global AI governance
Shafaq News – Shanghai On Saturday, China's Premier Li Qiang proposed creating a global organization for artificial intelligence cooperation, urging nations to coordinate efforts on development and safety. Speaking at the opening of the World Artificial Intelligence Conference (WAIC) in Shanghai, Li described AI as a new engine for growth but warned that global governance remains fragmented. He called for stronger international coordination to establish a broadly accepted global framework for AI. The three-day event gathers tech leaders and policymakers amid growing tech rivalry between China and the United States, with AI emerging as a key battleground. 'At present, global AI governance is fragmented,' Li said. 'There are significant differences between countries, particularly in regulatory concepts and institutional rules.' 'We must accelerate efforts to build a global AI governance framework that reflects broad consensus,' he added. The United States has imposed export restrictions on advanced technology to China, including high-end AI chips from companies like Nvidia, citing national security concerns over possible military applications. Despite those restrictions, China continues to make advances in AI, drawing increased scrutiny from US officials. While Li did not name the United States, he warned that AI could become an 'exclusive tool' controlled by a few countries and corporations. He also highlighted supply shortages in AI chips and restrictions on talent exchange as major challenges. Li stressed that China is willing to share its AI development experience and products with other nations, particularly those in the Global South.
