Oil Falls on Prospects of Rising Supply from Iraq, Russia
Oil fell on the prospect of rising flows from Iraq and Russia, as U.S. President Donald Trump seeks to end a three-year war in Ukraine.
Brent crude fell toward $74 a barrel, while West Texas Intermediate neared $70. The president of Iraq’s semi-autonomous Kurdistan region flagged the possibility of resuming oil exports next month after a nearly two-year shutdown.
Trump plans to meet with his Russian counterpart Vladimir Putin as early as this month. While traditional European allies have been sidelined, he has said Ukrainian President Volodomyr Zelenskiy will be involved in peace talks, a deal that could potentially affect the status of sanctioned oil from Russia.
Crude has been rocked by Trump’s swift tariffs — some of which have been dramatically reduced — and threats of sanctions on producers including Iran. Prices jumped on Friday after U.S. Treasury Secretary Scott Bessent said the administration intended to reduce Tehran’s oil exports to less than 10% of current levels, before falling amid doubts about the viability of the plan. Market gauges showed signs of weakness.
The spread between the two nearest WTI contracts on Monday shifted into a bearish contango structure — where prices for the shorter-dated contract are cheaper than those further out — for the first time since November. Speculators also reduced their net bullish holdings of Brent and WTI. Trading volumes may be lower on Monday because of the U.S. holiday. Brent for April settlement fell 0.4% to $74.44 a barrel as of 8:35 a.m. in Singapore. WTI for March delivery fell 0.5% to $70.38 a barrel.
Source: Bloomberg
