logo
Drone strikes in Iraqi Kurdistan disrupt oil output, lifting prices

Drone strikes in Iraqi Kurdistan disrupt oil output, lifting prices

Shafaq News18-07-2025
2025-07-18T05:25:28+00:00
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
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Seven international airlines return to Iraq's airspace
Seven international airlines return to Iraq's airspace

Iraqi News

time28 minutes ago

  • Iraqi News

Seven international airlines return to Iraq's airspace

Baghdad ( – The General Company for Air Navigation Services, part of Iraq's Ministry of Transport, announced on Monday (July 28, 2025) that seven international airlines have returned to Iraqi airspace. This development reflects increasing international confidence in the navigation services provided by the company and its full commitment to International Civil Aviation Organization (ICAO) standards, said Abbas Sabbar Al-Baydhani, Director General of the General Company for Air Navigation Services. He added that the return of these airlines indicates the rapidly evolving relationship between Iraq and global air transport companies. Prominent international airlines that have returned to Iraqi airspace include German Cargo, Swiss Air, Lufthansa AirX, Qantas Airline, Giant Cargo, LOT Polish Airlines, and Wizz Air Abu Dhabi. Al-Baydhani emphasized this growth reflects increasing trust in the competence of Iraqi air traffic controllers and the technical and operational capabilities of the company. The company continues to implement development and modernization plans for infrastructure and navigation equipment. Its goal is to provide top-tier services to airlines and strengthen Iraq's position as a crucial regional and international air corridor. This achievement comes with direct support from Minister of Transport Razzaq Muhaibas Al-Saadawi, who has directed the enhancement of Iraq's navigational standing and the development of its technical services since assuming his duties. It also highlights the diligent efforts of the General Company for Air Navigation Services and Iraqi air traffic controllers to elevate performance and ensure the highest levels of safety and fluidity in air traffic management.

Iraqi car market sees massive surge in Chinese vehicle sales in H1 2025
Iraqi car market sees massive surge in Chinese vehicle sales in H1 2025

Iraqi News

time29 minutes ago

  • Iraqi News

Iraqi car market sees massive surge in Chinese vehicle sales in H1 2025

Baghdad ( – The Iraqi car market is witnessing a dramatic shift, with Chinese vehicle sales soaring by an impressive 80% in the first half of 2025 compared to the same period last year. Over 18,000 cars from China have been imported into the country during this period, significantly up from approximately 10,000 units sold in the first half of 2024. This remarkable surge signals a burgeoning demand among Iraqi consumers for Chinese automobiles, a trend extensively analyzed by the Iraq Future Foundation for Economic Studies and Consultations. According to the foundation, the increase is primarily driven by the attractive combination of competitive pricing and robust features offered by Chinese models. Amir Al-Janabi, a leading expert in the Iraqi car market, highlighted in an exclusive interview with IraqiNews that consumer confidence has been significantly bolstered by the after-sales services. Official Chinese brand dealerships are providing a critical two-year average warranty, which covers repairs and malfunctions directly and free of charge. This comprehensive warranty is proving to be one of the most influential factors shaping purchasing decisions in the Iraqi market. Given these compelling advantages, Al-Janabi anticipates continued and even greater growth in Chinese car sales throughout the second half of this year. 'Chinese cars are no longer viewed as lower quality; they are shaping the future of the automobile industry.' Al-Janabi to IraqiNews. Major Chinese brands actively establishing their presence and driving this market shift in Iraq include MG, Changan, and Jetour. Their diverse offerings are catering to a growing segment of Iraqi buyers. A broader regional trend supports this local boom. The Iraq Future Foundation's report also indicates that Chinese car exports to Middle Eastern countries collectively experienced substantial growth in the first half of 2025. The total number of vehicles exported to the region increased by 65%, reaching over 584,000 units, up from 353,000 in the corresponding period of 2024. The overall value of these regional exports climbed to approximately $7.7 billion, a significant jump from $4.5 billion in the first half of 2024. This data underscores China's expanding footprint and rising demand for its vehicles across regional markets.

UNAMI chief hopes Erbil-Baghdad financial deal holds
UNAMI chief hopes Erbil-Baghdad financial deal holds

Rudaw Net

time6 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.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store