Oil prices remained close to $79 on international markets on Thursday, supported by a sharp drop in inventories in the US and the suspension of exports from Iraqi Kurdistan.
There was a slight price drop in the morning trading. Brent oil prices were at $78.59, while a barrel of Texas WTI oil was at $73.88, according to data published on the OilPrice website.
Analysts had expected the data to show a slight rise in inventories.
The suspension of exports from Iraqi Kurdistan also encouraged the price increase during this week. Producers have shut down or reduced production at several oil fields due to the pipeline’s closure to the Turkish port of Ceyhan. Company announcements signal that even fewer barrels will be coming to market.
Exports of about 450,000 barrels per day from Iraqi Kurdistan via Turkey were halted last weekend after Iraq asserted its right to an export license in an arbitration dispute.
However, the price stimulus due to the export situation could decline quickly, analysts from investment bank Citigroup commented on Thursday.
A permanent political solution to Iraq’s problem
Changes in Iraq’s domestic politics could very soon lead to a lasting political solution, the US investment bank speculated, estimating that deliveries through the pipeline could rise by about 200,000 barrels a day.
On the other hand, Russian production had a mild decline in the first three weeks of March, according to the claims of informed sources, which state that it decreased by 300,000 barrels per day and not by 500,000.
On Wednesday, the Organization of the Petroleum Exporting Countries (OPEC) revealed that the cost of a barrel of oil from its members was almost the same, amounting to 77.72 dollars.
