Decline in Oil Prices with the Resumption of Kurdistan Exports and Anticipation of Increased Production by "OPEC+"

Oil prices fell on Monday, influenced by two main factors: the resumption of oil exports from the Kurdistan region of Iraq via Turkey, and expectations that the "OPEC+" alliance will increase production next month, which boosts the global supply of crude.

Brent crude futures fell by about 0.4% to $69.73 a barrel, after closing on Friday at its highest levels since July 31. West Texas Intermediate crude also dropped by 0.6% to $65.29 a barrel, giving up most of the gains from the previous session.

Michael McCarthy, CEO of the investment platform "Momo" in Australia and New Zealand, commented on this market scene, saying to "Reuters": "Ongoing concerns about increased production are limiting gains, but expectations of supply shortages in the short term are putting pressure on oil prices as the trading week begins."

In a separate development, the Iraqi Ministry of Oil announced that crude flowed on Saturday through a pipeline from the Kurdistan region in northern Iraq to Turkey, for the first time in two and a half years, following an agreement that allowed the resumption of exports.

The Iraqi oil minister explained to the Kurdish "Rudaw" channel on Friday that the agreement between the federal government and the Kurdistan regional government and foreign oil producers in the region allows for the flow of between 180,000 and 190,000 barrels per day of crude to the Turkish port of Ceyhan.

Informed sources indicated that the United States exerted pressure for the restart, which is expected to eventually return up to 230,000 barrels per day to global markets.

This comes at a time when "OPEC+" is working to increase production to boost its market share, as three sources mentioned that the "OPEC+" alliance is likely to agree during its meeting next Sunday to a new increase of no less than 137,000 barrels per day, driven by rising prices and the group's desire to regain its share.

It is noteworthy that Brent and West Texas Intermediate crude rose by more than 4% last week, achieving the largest weekly gains since June, after Ukrainian attacks on energy infrastructure in Russia reduced its fuel exports.