Oil prices were higher on Tuesday, bolstered by a drop in exports from Iraq, OPEC’s second-biggest producer, and an anticipated decline in U.S. commercial oil stocks. Iraqi oil exports have decreased by more than 200,000 barrels per day in October while crude oil exports through Iraqi Kurdistan pipeline to the Turkish port of Ceyhan increased by 13 percent to 288,000 barrels per day. Despite this increase, the Iraqi Kurdistan pipeline was still only producing half of its regular levels as a result of political friction in the area.
U.S. WTI futures were up 0.17 percent as of 12:32 p.m. HK/SIN to trade at $51.98 per barrel. Brent crude futures were trading at $57.46 per barrel, a 0.16 percent increase. Traders are now questioning whether Iraq will increase its production before the month’s end as promised on Saturday by Iraqi Oil Minister Jabar al-Luaibi, a move that would weaken oil prices again.
Currency Market Movements
On the currency markets, the euro was up 0.14 percent against the dollar to trade at $1.1764as traders continue to worry over who will become the next Federal Reserve Chair. On Monday, U.S. President Donald Trump told reporters that he is “very, very close” to making a decision. The appointment of a hawkish policymaker could boost the dollar, while a dovish candidate could send the greenback lower.
The dollar was also down against the yen just after midday during Tuesday’s Asian session, trading at 113.36 yen, a 0.06 percent decline. The greenback also struggled against the Canadian dollar and the Swiss franc on Tuesday, sending the dollar index down 0.13 percent to 93.73 .DXY.