During Tuesday’s Asian session, WTI traded around $58.65, slipping as Iraq brought one of its key oilfields back online. Market participants are also watching for today’s API report on U.S. crude inventories.
Reuters said Iraq resumed output at Lukoil’s West Qurna 2 field after a pipeline leak had sharply reduced its flow. That field produces roughly 460,000 barrels per day—about 0.5% of global supply and 9% of Iraq’s total output, making it OPEC’s second-largest producer after Saudi Arabia.
Still, geopolitical concerns could lend support to oil prices. Former President Trump criticized Ukrainian President Zelenskiy for stalling talks to end the Russia-Ukraine war, and analysts expect restrictions on Russian energy exports to remain in place.
Investors are also gearing up for Wednesday’s Federal Reserve decision, where a 25-basis-point rate cut is widely anticipated. Lower U.S. interest rates tend to weaken the dollar—making dollar-priced commodities cheaper for overseas buyers—and bolster the outlook for oil demand in 2025.