Sign In / Up

Add contribution as a guest

Your email will not be displayed publicly
Benefit of signing in/signing up to personalize comment

Comment as a guest

Your email will not be displayed publicly
Benefit of signing in/signing up to personalize comment


Not a member Register   Forgot Password
or connect using





Turkish threat to block Kurdistan oil exports drive prices to 2-year high

By Rudaw 26/9/2017
An oil pipeline in the Kurdistan Region. Photo: Farzin Hassan/Rudaw
An oil pipeline in the Kurdistan Region. Photo: Farzin Hassan/Rudaw
ERBIL, Kurdistan Region – Oil prices rose to the highest they have been in over two years on Monday, partially due to concerns about Kurdistan’s independent referendum and a threat from Turkey to block Kurdistan’s oil exports. 

"Brent Crude traded a 27-month high overnight as the Kurdish referendum stokes supply concerns, while strong demand from China also aids sentiment,” said an analyst at Accendo Markets Mike van Dulken, as reported by Business Insider on Tuesday.

Brent Crude reached a high point of $59.02 barrels per day (bpd) after more than two years averaging between $52.00 and $53.00 bpd.

Turkey has threatened that it would close its borders with the Kurdistan Region because of vote for independence from Iraq. Turkish President Recep Tayyip Erdogan said they would also consider blocking Kurdistan’s oil exports.

"The Kurdistan region of Iraq currently produces around 650,000 barrels per day, of which 85% goes through the Turkish pipelines. If the Turks decided to cut crude flows, it would create a shock which markets are currently pricing in,” said Hussein Sayed Chief Market Strategist at FXTM, a leading firm specializing in trading.

"Entrance-exit will be closed" at the Khabur border crossing to the Kurdistan Region, Erdogan said in a speech in which he angrily denounced Monday's referendum as "illegitimate," according to AFP.

He added: "After this let's see... who they sell (their oil) to. The valve is with us. It's finished the moment we close it."

In addition to the pipeline bringing Kurdistan’s oil to Turkey’s Ceyhan port for export to international markets, Turkey is also a key buyer of Kurdistan’s oil and gas, and is an important trading partner. 

In the first half of 2017, $5 billion worth of trade passed between Turkey and Kurdistan, a 20 percent increase over the same period the year before. 



Data pager
Page size:
Blue Merchant | 26/9/2017
That means Turkish donkey's have to pay more for their oil, they're shooting themselves in the foot :)
Stewee Guy
Stewee Guy | 26/9/2017
To all our Kurdish people in Kurdistan Basûr, I hope our Muslim neighbors reaction toward the referendum will open your eyes about the real face of Islam. Maybe it's time to convert the 5500 mosques you built into churches, Buddhist temples, Synagogues and Kurdish cultures. PS and Know if it's wasn't of the West and USA our Muslim neighbors would've turned every Kurdish city and town into another Shingal.
Ali Herki | 26/9/2017
Today is our victory day and nobody can do anything to us mr Erdogan and mr Maliki must underestand us and we have been suffering for many years and now is time for equality and selfie determination and dialogue and Kurds will never be under control of Baghdad any more ..1- This is will of our people and our people want to be free and our people are not equal to other citizen in iraq and we are always ready for open dialogue and for a fee democratic Iraq and we want To determine direction on statehood and to administer themselves ..The referendum is also viewed as a way for the Kurds to help legitimize their hold on newly gained territory from the fight against the Islamic State. After nearly three years of war, the Kurdistan Region has gained control over many of the disputed territories in contention with the central government in Baghdad, most importantly the oil-rich city of Kirkuk.
realist | 27/9/2017
kurdish domestic energy consumption is sufficient to make the oil and gas sector profitable for companies working in krg for decades
Non kurd | 28/9/2017
Not a good idea. You must compartmentalize business and politics. Continue the trade which benefits Kurds and Turks. Trade is the best way for Turkey to expand her influence not threats and war.

Be Part of Your Rudaw!

Share your stories, photos and videos with Rudaw, and quite possibly the world.

What You Say

Falco | 9/25/2018 10:35:59 PM
A hand holding a tulpe in itself is disgusting enough on a flag but everything else said tops any recipe for misery and humiliation.
independence | 9/26/2018 5:03:54 AM
Jalal Talabani has created PUK for personal ambition and to divide Kurdistan, his wife and children have sold Kerkuk to Iraq in October 2017.The PUK...
KRG Election 10 Questions: Vote PUK for stability, says candidate
| 13 hours ago | (3)
Heviya welat | 9/25/2018 7:50:19 PM
The independence voting was one of the greatest ever in the Kurdish history. We, as Kurds used our rights to seperate from our dictator. But the so...
Parvez | 9/26/2018 3:28:21 AM
No, I cares for you. Separate country is not a good idea but i support your right to develop and flourish. I urge Iraqi leaders to provide each Iraqi...
Fellow Kurds, why blame yourself for wanting independence?
| 23 hours ago | (13)
FAUthman | 9/25/2018 3:07:39 PM
If you think the Kurds lost Kirkuk and the disputed territories to Baghdad, think again. These were classified as disputed territories by the UN and...
Parvez | 9/26/2018 3:21:48 AM
I have no doubt that Kurds and Peshmerga are brave but it is not wise to break the countries. The main objective should be to develop Kurdistan...
Critics of Kurdistan’s historic independence vote remain misguided
| yesterday at 09:41 | (9)
fig | 9/25/2018 12:15:59 PM
Trump just tweeted "“I have no plans to meet Iranian President Hassan Rouhani. Maybe someday in the future. I am sure he is an absolutely lovely...
Parvez | 9/26/2018 3:06:29 AM
Mr.Barzani wanted to create a country Kurdistan with the support of USA and Israel but he failed to do so.Now, terrorists want to create a Kurdistan...
Pompeo: US seeking 'Iraqi national government' to counter Iran's influence
| yesterday at 08:59 | (5)

Elsewhere on Rudaw

Erdogan, Merkel to meet amid tensions, protests 4 hours ago |

Erdogan, Merkel to meet amid tensions, protests

“Inviting a criminal to a banquet” more
A week on, refugee agency trying to repatriate bodies of Kurds from Turkey 18 hours ago | (1)

A week on, refugee agency trying to repatriate bodies of Kurds from Turkey

Turkish police have arrested six smugglers in more
Kurdistan independence referendum: Was it worth it? 21 hours ago | (3)

Kurdistan independence referendum: Was it worth it?

Did its consequences merit holding the referendum more
0.797 seconds