Oil Prices Maintain Stability Despite Supply Concerns and US Policy Uncertainty

Oil prices maintained their stability during trading on Friday, July 18, after recording gains in the previous session, amid concerns over supply disruptions due to drone attacks on oil fields in the Kurdistan region of Iraq, in addition to challenges arising from US trade policy and its impact on global demand.
Brent crude futures fell by 0.06% (4 cents) to reach $69.48 per barrel, while West Texas Intermediate crude dropped by 0.04% (3 cents) to $67.51 per barrel by 02:39 GMT.
Continuous attacks on oil facilities in the Kurdistan region of Iraq have disrupted nearly half of the production, with daily crude output decreasing by 140–150 thousand barrels out of 280 thousand barrels, according to energy sector sources. Reports suggest that Iran-backed factions may be behind these attacks, although no entity has claimed responsibility so far.
High oil demand due to travel seasons, especially in the northern hemisphere, has supported prices. According to a memo from J.P. Morgan, the average global oil demand reached 105.2 million barrels per day during the first half of July, an increase of 600 thousand barrels compared to the same period last year.
Threats of new US tariffs starting in August continue to weigh on market sentiment, while some major producers are considering easing production restrictions, which could lead to an increase in oil supply as the summer peak season ends.
Despite the security escalation, the Iraqi government announced the resumption of oil exports from Kurdistan to Turkey via the pipeline after a two-year hiatus, which may contribute to supply stability in the future.
It is worth noting that oil prices have experienced a cumulative decline of over 1% since the beginning of the week, influenced by intertwined geopolitical and economic factors.