traded lower on Wednesday morning after the Iraqi government and the Kurdistan Regional Government agreed to resume oil exports to the Ceyhan energy hub in Turkey.
At 9.58 am on Wednesday, May Brent oil futures were at $101.17, down by 2.18 per cent, and May crude oil futures on WTI (West Texas Intermediate) were at $92.56, down by 3.11 per cent. March crude oil futures were trading at ₹8604 on Multi Commodity Exchange (MCX) during the initial hour of trading on Wednesday against the previous close of ₹8871, down by 3.01 per cent, and April futures were trading at ₹8610 against the previous close of ₹8844, down by 2.65 per cent.
Citing Iraqi state media reports, a Reuters report said oil flow from Ceyhan port is expected to start at 7.00 GMT on Wednesday.
In a post on the social media platform X, Masrour Barzani, Prime Minister of the Kurdistan Region of Iraq, said: “Given the extraordinary circumstances facing the country, and the responsibility we all share to get through this difficult chapter, we have decided to allow oil to flow through the Kurdistan Region’s pipeline as soon as possible. In parallel, our discussions with Baghdad will continue with urgency to lift the restrictions on imports and trade into the Kurdistan Region, and to secure guarantees for oil and gas companies so they can safely resume production.”
In their Commodities Feed for Wednesday, Warren Patterson, Head of Commodities Strategy of ING Think, and Ewa Manthey, Commodities Strategist, said ICE Brent has now settled above $100 a barrel for four consecutive days. With no sign of de-escalation in West Asia, the market continues to consolidate above this key level. Oil flows remain largely constrained, despite hopes that Iran might allow additional tankers to move through the Strait of Hormuz to select countries. However, if Iran’s plan is to inflict pain through higher energy prices, the number of tankers it allows through the Strait of Hormuz may be very limited, they said.
Confirmation of the death of Iran’s security chief, Ali Larijani, only increases uncertainty for markets. It’s unlikely to lead to de-escalation.
Energy infrastructure across the Persian Gulf continues to be targeted by Iran, with the UAE’s Fujairah port being targeted multiple times. Meanwhile, upstream production continues to decline as producers try to manage storage constraints.
There are reports that the UAE and Kuwait oil cuts are now as much as 1.5 million barrels a day and 1.3 million barrels a day, respectively. This is on top of roughly 2.9 million barrels a day and 2-2.5 million barrels a day of reported supply cuts from Iraq and Saudi Arabia, they added.
Meanwhile, US President Donald Trump took to the social media platform Truth Social to express his displeasure over NATO allies.
In a post Truth Social, he said: “The United States has been informed by most of our NATO “Allies” that they don’t want to get involved with our Military Operation against the Terrorist Regime of Iran, in the Middle East, this, despite the fact that almost every Country strongly agreed with what we are doing, and that Iran cannot, in any way, shape, or form, be allowed to have a Nuclear Weapon. I am not surprised by their action, however, because I always considered NATO, where we spend Hundreds of Billions of Dollars per year protecting these same Countries, to be a one way street — We will protect them, but they will do nothing for us, in particular, in a time of need. Fortunately, we have decimated Iran’s Military — Their Navy is gone, their Air Force is gone, their Anti-Aircraft and Radar is gone and perhaps, most importantly, their Leaders, at virtually every level, are gone, never to threaten us, our Middle Eastern Allies, or the World, again! Because of the fact that we have had such Military Success, we no longer “need,” or desire, the NATO Countries’ assistance — WE NEVER DID! Likewise, Japan, Australia, or South Korea. In fact, speaking as President of the United States of America, by far the Most Powerful Country Anywhere in the World, WE DO NOT NEED THE HELP OF ANYONE!”
March natural gas futures were trading at ₹273.70 on MCX during the initial hour of trading on Wednesday against the previous close of ₹280.90, down by 2.56 per cent.
On the National Commodities and Derivatives Exchange (), March jeera contracts were trading at ₹21935 in the initial hour of trading on Wednesday against the previous close of ₹21600, up by 1.55 per cent.
April turmeric (farmer polished) futures were trading at ₹14,928 on NCDEX in the initial hour of trading on Wednesday against the previous close of ₹14,778, up by 1.02 per cent.