Critically important for Iraq: US awaits Turkey's permission for the Ceyhan-Kirkuk Pipeline

Iraq and the US have held talks on reopening the Ceyhan-Kirkuk pipeline, which was shut down two years ago due to cost disputes. While Iraq states that the line is technically ready, the US is pushing for the process to be accelerated. Turkey's permission is required for the pipeline to be opened.

US Secretary of State Marco Rubio and Iraqi Prime Minister Mohammed Shia al-Sudani emphasized that the line should be put into operation as soon as possible. Iraqi Oil Minister Hayyan Abdul-Ghani announced that they are holding talks with Turkey on technical issues.

The pipeline allowed Iraq to transport oil to the Ceyhan Port on the Mediterranean via Turkey. The line was closed in March 2023 due to a payment dispute.

DECLINE IN OIL PRICES

Concerns over global economic growth caused crude oil prices to fall to their lowest level of the year this week. Although the Iraqi government states that exports from the Kurdistan Regional Government will remain within the OPEC+ quota, it has not yet made a clear statement on how this quota will be complied with. It is known that Iraq has a weak track record in complying with production restrictions in the past.

Rubio and Sudani also discussed the need for Iraq to increase its energy independence. Iraq still imports gas from Iran, and the US wants Baghdad to break free from this dependency. The meeting also emphasized that the steps taken by Iraq to prevent ISIS from regaining strength in the region must continue.