Oil slips on prospect of increased supplies from Iraq and Russia

Oil declined on the prospect of increased flows from Iraq and Russia, as US President Donald Trump pushes to end the three-year old war in Ukraine.

Brent crude fell toward $74 a barrel, while West Texas Intermediate was near $70. The president of Iraq’s semi-autonomous Kurdistan region flagged the likely resumption of oil exports next month after an almost two-year shutdown.

Trump is planning to see his Russian counterpart Vladimir Putin as early as this month. While traditional European allies have been sidelined, he said Ukrainian President Volodomyr Zelenskiy will be involved in peace talks. A possible treaty could impact the status of sanctioned oil from Russia.

Crude has been whipsawed by Trump’s rapid-fire tariffs — some of which were promptly walked back — and threats of sanctions on producers including Iran. Prices spiked on Friday after US Treasury Secretary Scott Bessent said the administration aims to squeeze Tehran’s oil exports to less than 10% of current levels, before dropping amid doubts over the plan’s feasibility.

Market gauges are flashing signs of weakness. The spread between WTI’s two nearest contracts on Monday flipped into the bearish contango structure — where prices for shorter-dated contracts are cheaper than for those further out — for the first time since November. Speculators have also reduced their net bullish holdings of both Brent and WTI.

Trading volumes may be lower Monday due to a US holiday.

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