“Currently there is news that the KRG (Kurdistan Regional Government) and federal Iraq have come to an agreement which would politically allow the resumption of exports, however technically we still have doubts about exports resuming,” James Forbes, senior analyst of upstream oil at FGE Nexant told The National.
“These doubts are because Iraq is currently significantly overproducing its Opec quota, and any resumption of northern pipeline exports would require a further production increase based on our supply/demand balances.”
However, he also clarified that the decision by Turkey to end the deal next year will not have an impact on oil markets.