Oil prices fell for a fifth consecutive session on Tuesday, as Iraq’s decision to resume approximately 230,000 barrels of crude oil exports via Turkey fueled concerns about oversupply.
Brent crude futures fell 34 cents, or 0.51%, to $66.23 per barrel at 6:39 a.m. GMT, while WTI futures fell 29 cents, or 0.47%, to $61.99 per barrel.
Brent and WTI have fallen 3% and 4%, respectively, over the past five sessions.
The prevailing theme remains oversupply, while the demand outlook remains uncertain as 2026 approaches. The reopening of the pipeline is also putting pressure on prices. This breakthrough will allow exports of approximately 230,000 barrels per day (bpd) to resume, which have been suspended since March 2023.
Overall, the global oil market is facing rising supply and slowing demand due to the rapid development of electric vehicles and economic hardship fueled by US tariffs.
The International Energy Agency (IEA) stated in its latest monthly report that world oil supplies will grow faster this year and that oversupply could increase in 2026 as OPEC+ members increase production and supply from outside the group increases.
Still, risks remain in the market as investors watch the European Union consider imposing tougher sanctions on Russian oil exports and the escalation of geopolitical tensions in the Middle East.
A survey released on Monday showed that while US crude oil inventories were expected to rise last week, gasoline and distillate stocks likely fell.
Data released on Monday showed that Saudi Arabia’s crude oil exports in July reached a four-month low.
Iraq, the second-largest producer in the Organization of the Petroleum Exporting Countries (OPEC), increased its oil exports under the OPEC+ agreement, according to a statement by state oil marketer SOMO.