Oil dips as Iraq exports rise amid demand concerns

Core Insights - Oil prices remained stable amid geopolitical tensions and oversupply concerns, with Brent crude at $66.13 per barrel and WTI at $62.23 per barrel [1][2]. Group 1: Oil Price Movements - Brent crude oil futures decreased by 55 cents, or 0.8%, while U.S. West Texas Intermediate crude fell by 45 cents, or 0.7% [1][2]. - Both Brent and WTI experienced a decline of over 1% on Friday, reflecting concerns about large supplies and decreasing demand [3]. Group 2: Geopolitical Factors - Rising tensions in the Middle East and Eastern Europe, including the recognition of a Palestinian state and unauthorized Russian airspace incursions, did not lead to immediate oil supply disruptions [3]. - The geopolitical landscape is contributing to market uncertainty but is currently not affecting oil supply directly [3]. Group 3: Supply and Demand Dynamics - Analysts predict a tapering of global oil demand from Q3 to Q4 and into Q1 2026, while OPEC+ production is on the rise [4]. - Iraq, as OPEC's second-largest producer, is increasing oil exports, with September's exports expected to be between 3.4 million and 3.45 million barrels per day [4]. - There is speculation regarding whether China will stockpile the surplus oil or if prices will drop into the $50 range, with analysts leaning towards the latter scenario [4]. Group 4: Regional Developments - Iraq has received preliminary approval to resume pipeline oil exports from its Kurdistan region through Turkey, indicating a potential increase in regional oil supply [5].