Concerns that the US might toughen its stance against Russia have pushed Oil prices back to the upper edge of the trading range that has been in place for two months, Commerzbank's commodity analyst Barbara Lambrecht notes.

Oil prices near two-month high on geopolitical concerns

"Meanwhile, there was also news of increased supply (or supply potential): Oil companies operating in Iraqi Kurdistan have reached an agreement with the Iraqi central government and the Kurdish regional government, enabling exports from the northern region to resume shortly."

"Since March 2023, the Iraq-Turkey pipeline has been unused due to disputes. Iraqi Foreign Minister Fuad Hussein expressed optimism that exports, initially set at an agreed volume of 230,000 barrels per day, could resume within a matter of days. Initial shipments are now scheduled for Saturday. A similar attempt in March failed to materialize."

"However, it should be noted that if production in the north increases, Iraq, which is bound by production quotas, would have to reduce output elsewhere."