Oil Drops as Iraq Resumes Kurdish Exports, OPEC+ Eyes Output Hike

WTI crude oil futures fell toward $64 per barrel on Monday after Iraq's Kurdistan region resumed crude oil exports on Saturday after a two-and-a-half-year halt, and as OPEC+ plans another output hike, exacerbating concerns about a glut.

The agreement between Iraq's federal government, the Kurdistan Regional Government, and international oil companies operating in the region will initially allow 180,000–190,000 bpd to flow to Turkey's Ceyhan port.

This comes after US pressure to bring Kurdish crude back to international markets, with volumes eventually expected to rise to around 230,000 bpd.

The return of Kurdish oil coincides with OPEC+ efforts to boost output to further gain market share.

Reports indicated the group will likely approve at least a 137,000 bpd increase for November at its meeting later this week.

Last week, Crude oil rose more than 5%, its biggest weekly gain since June, as Ukraine's continued strikes on Russian energy infrastructure cut the country's fuel exports.