11/9/2018, 11:44 AM (Source: TeleTrader)
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Iraq nearing deal with Kurds to restart Kirkuk oil exports

The Iraqi government is close to striking a deal with the local Kurdish authorities that would restart oil exports from the disputed territory of Kirkuk, the Financial Times reported on Friday. The report comes after the United States pressured the two sides to come to an agreement in the light of renewed sanctions against Iran, which could restrict oil demand and drive crude prices up. The deal, expected by the end of November, would add up to 400,000 of barrels of oil per day and lift some pressure off the crude prices, as was demanded by United States President Donald Trump earlier this week.

The Kirkuk oil fields have been closed since Iraq retook control the disputed city from the Kurdish Regional Government forces a year ago, following the unsuccessful independence bid launched by the Kurds. In December last year, Iraq and Iran signed a deal to transport crude oil from Kirkuk oil fields at the rate of 30-60 thousand barrels per day through oil tankers until the completion of the oil pipeline. Earlier this week however, the United States allowed Iraq, along with seven other countries, to keep trading certain goods with Iran despite the sanctions, under the condition that Baghdad helps with the oil supply.

Breaking the News / FH