Iraq Resumes Oil Exports to Turkey

Iraq has resumed oil exports to Turkey via the Kirkuk-Ceyhan pipeline after a two-and-a-half-year hiatus, according to Reuters. For the first time since March 2023, oil exports from the Iraqi Kurdistan region to Turkey have restarted through the pipeline.

Supplies resumed this morning following a temporary agreement signed between Baghdad, the Kurdish regional government, and international oil companies. Export volumes are expected to range between 180,000-190,000 barrels per day, with the potential to increase up to 230,000 barrels daily.

The oil will reach the Turkish port of Ceyhan and will be sold through Iraq's state exporter SOMO. For each barrel sold, $16 will be transferred to a special account intended for financial settlements with the companies.

The United States has actively lobbied for the resumption of exports, which is anticipated to boost global supplies at a time when OPEC+ is increasing output to gain market share. Within 30 days, the parties will discuss a debt repayment mechanism for the oil companies, estimated to be around $1 billion.