Oil snapped four-day losing streak on Kurdish export delays and drone strikes in Russia

Oil prices rose on Tuesday, snapping a four-day losing streak, as renewed supply concerns offset broader fears of oversupply and slowing demand. Stalls in Kurdish crude exports and fresh attacks on Russian energy infrastructure provided a bullish undertone to the market.

Brent settled $1.06 higher, or 1.6%, at $67.63 a barrel.

WTI gained $1.13, or 1.8%, to close at $63.41. 

Exports from Iraq’s Kurdistan region to Turkey remain stalled, with pipeline flows still offline despite expectations of a breakthrough. A resumption of around 230,000 barrels per day has been delayed as key producers demand guarantees on debt repayments. The halt, in place since March 2023, continues to tighten regional supply.

Meanwhile, Russian crude flows have come under increasing scrutiny. A series of Ukrainian drone strikes on Moscow’s refineries in recent weeks has heightened geopolitical risks, underscoring the vulnerability of Russia’s energy sector as Western nations intensify pressure to end the war in Ukraine.

Even so, the broader outlook remains cautious. The market faces persistent headwinds from abundant oil supply, waning consumption, and structural shifts such as the wider adoption of electric vehicles, alongside economic strains exacerbated by US trade tariffs.

In its latest monthly report, the International Energy Agency (IEA) said world oil supply would rise more rapidly this year and a surplus could expand in 2026 as OPEC+ members increase output and supply from outside the producer group grows.

Written: Farid Muzaffar