Oil prices fall 2% as Iraq restores supply

World oil prices fell 2% in the trading session on December 8, after Iraq restored operations at a large oil field accounting for 0.5% of global supply.

Oil rig in Texas, USA. Illustration photo: THX/TTXVN

Besides, cautious sentiment prevailed in the market as negotiations to end the conflict in Ukraine were still ongoing.

Accordingly, the price of Brent crude oil for delivery decreased by 1.26 USD (equivalent to 1.98%) to 62.49 USD/barrel. The price of US light sweet crude oil (WTI) decreased by 1.20 USD (2%) to 58.88 USD/barrel.

On the supply side, two Iraqi energy officials confirmed that the country has restored production at the West Qurna 2 oil field after fixing a leak in the export pipeline. This is one of the world's largest oil fields with an output of about 460,000 barrels/day.

In addition to the supply issue in Iraq, the market is also paying attention to the situation of peace negotiations between Russia and Ukraine. Mr. Tamas Varga, market analyst at PVM, said that if any agreement on Ukraine is reached in the near future, Russian oil exports will increase and put downward pressure on the market.

Analysts at ANZ bank estimate that the potential outcome of the latest attempt to end the conflict could create supply disruptions of more than 2 million barrels per day. Analysts say a ceasefire is the main downside risk to the oil price outlook, while prolonged damage to Russia's oil infrastructure is a significant support factor for the "black gold".

In another development, sources said the Group of Seven (G7) and the European Union (EU) are discussing replacing a price cap on Russian oil exports with a comprehensive ban on maritime services, a move that could further restrict supplies from the world's second-largest oil producer.

Source: https://baotintuc.vn/thi-truong-tien-te/gia-dau-giam-2-khi-iraq-khoi-phuc-nguon-cung-20251209073807936.htm