//Oil market reaction to Kirkuk skirmish muted as exports remain unaffected – Oil

Oil market reaction to Kirkuk skirmish muted as exports remain unaffected – Oil

Even as crude futures markets moved higher to news early Monday that
Iraqi government forces had moved to take back the disputed, oil-rich city of
Kirkuk, the physical market remained quiet as exports were unaffected, sources
said.”For sure, there are a lot of rumors going on about Iraq today. But apart
from the flat price going up…no disruptions have been reported,” a trading
source said.The front-month ICE Brent futures contract jumped more than $1/b in
morning European trade Monday in the wake of the news, extending its premium
over the December NYMEX crude contract by more than 20 cents/b to nearly
$5.75/b.But despite the move in the futures markets, physical buyers of Kurdish
and Iraqi crude barrels in Europe remained more cautious about jumping to
conclusions about the future stability of exports.”People are certainly watching what happens, but no one seems to be doing
anything specific,” a trading source said. “Exports were not at all impacted.”As of early afternoon European trading, flows out of the Northern
Iraq-Turkey pipeline — a flow managed by the Kurdish Regional Government in
Erbil — were continuing apace, with at least two Suezmax vessels scheduled to
load the KRG’s KBT crude at the Turkish Mediterranean port of Ceyhan.”No one is all that worried,” a refining source said. “This should not
impact the market all that much because Baghdad and Erbil will have to find
some agreement at some point.”–Paula VanLaningham, paula.vanlaningham@spglobal.com–Edited by Dan Lalor, daniel.lalor@spglobal.com

Source link