Crude Oil Flows Resume from Kurdistan to Turkey After 2.5 Years

Crude oil has begun flowing again from Kurdistan to Turkey for the first time in 2.5 years after a new interim agreement was reached. The deal, facilitated by pressure from the U.S., allows for increased oil exports from Iraq, amid OPEC's plans to boost market share.

For the first time in over two years, crude oil has resumed flowing through a pipeline from Iraq's Kurdistan region to Turkey, following an interim agreement. Iraq's oil ministry announced the resumption, which began at 6 a.m. local time, signaling a breakthrough in a long-standing deadlock.

The agreement, involving Iraq's federal and Kurdish regional governments along with foreign oil producers, enables a daily flow of up to 190,000 barrels to Turkey's Ceyhan port. This move comes amid U.S. pressure for the restart, aiming to contribute to the global oil market as OPEC+ increases output.

Iraq's exports are set to rise, staying within OPEC quotas, amid efforts to settle outstanding debts with oil companies operating in Kurdistan. The Kurdish region's commitment to deliver a significant daily crude quota underscores an attempt to stabilize and boost Iraq's oil production and exports.

(With inputs from agencies.)