Oil Daily | Crude Traders Cut WTI Exposure Amid Sentiment Shift; Iraqi Kurdistan Resumes Oil Exports

【Global Oil Supply and Demand】

Crude oil traders are reducing exposure to oil contracts as sentiment changes. Net-long bets on West Texas Intermediate declined for the fourth consecutive week, reaching lows not seen since last October. This shift results from changes in net-long and net-short positions alongside geopolitical developments such as a potential peace deal for Ukraine.

The Iraqi government has resumed crude oil exports from Kurdistan after a year-long suspension. This move, influenced by U.S. pressure, resolves a conflict with Turkey. Restarting exports could raise questions about OPEC compliance but is expected to legally redirect existing supplies rather than increase overall production.

Trump's tariff measures, including a 10% tariff on Chinese imports and a reciprocal move by Beijing on U.S. crude oil imports, have negatively impacted oil prices. These trade tensions add to the challenges in the global oil market, influencing supply dynamics and pricing.

【Company News】

Companies operating the Leviathan gas field offshore Israel plan a substantial production increase from 12 billion to potentially 21 billion cubic meters annually, with an investment of $2.4 billion. The expansion supports growing regional demand and strengthens Israel's role as an energy provider, with supply links to Europe also being considered.

Saipem and Subsea7 are merging operations in a deal worth over $4.6 billion, forming Saipem7. This merger aims to create a global oil field services leader with significant industrial and technological value. The move is part of ongoing consolidation efforts in the oil field services sector, especially given shrinking growth in onshore oil and gas.