AJ
Pipeline to Turkey’s Ceyhan port
Baghdad is now suggesting it will make nice with the Turkey by giving them Basra oil and cutting the Kurds out.
Iraq-Iraqi Kurdistan export talks ended this week without any resolution, leaving Kurdish oil stranded indefinitely. The three parties to the talks–Iraq, Iraqi Kurdistan (KRG) and Turkey–were quick to say that a new round of talks was expected next week, but no one’s holding their breath.
The talks were to finally restart crude exports from Iraqi Kurdistan, which had been offline over disputes about export rights and the federal budget, as well as over Turkey’s receipt of Kurdish oil that bypassed the Iraqi federal government. Baghdad has won this war, but it’s getting greedy now.
The talks failed because Baghdad suddenly suggested it might export Basra oil from southern Iraq through the Turkey Ceyhan port. This will be seen as a major insult to the Kurdistan Regional Government (KRG). The KRG was exporting its oil via pipeline to Turkey’s Ceyhan port. While it remains unclear, it appears that Baghdad is now suggesting it will make nice with the Turks by giving them Basra oil and cutting the Kurds out.
IMO, there are a lot of power plays going on over this, so sit tight and see how it plays out. I've traded crude oil for years and have watched this drama unfold for years. Like the article said, no one's holding their breath.
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