WTI Crude Nears $66.50 on Iraqi Oilfield Attacks and Supply Disruptions

WTI Crude Nears $66.50 on Iraqi Oilfield Attacks and Supply Disruptions

West Texas Intermediate (WTI) crude oil continues its upward momentum for the third straight session, reaching $66.40 per barrel in early Friday trading. The rally is primarily driven by supply concerns after suspected Iranian-backed militia attacks targeted oilfields in the Iraqi Kurdistan region, as reported by Reuters.

Iraq Supply Hit by Militia Attacks

According to two energy officials, the oilfield attacks have reduced production in the autonomous Kurdish region by 140,000 to 150,000 barrels per day (bpd), a steep drop from its typical output of approximately 280,000 bpd. While no group has taken responsibility, Iran-backed militias are believed to be involved, escalating fears of further regional instability.

US Crude Inventory Data Adds to Bullish Pressure

Compounding the supply-side tension, US Energy Information Administration (EIA) data released this week showed that crude inventories declined by 3.9 million barrels, far exceeding the expected draw of 552,000 barrels. This sharp drop is seen as evidence of strong demand dynamics in the oil market.

The International Energy Agency (IEA) also highlighted last week that while production has increased globally, it has not resulted in rising inventories—a clear signal of robust consumption.

Market Outlook

The combined impact of Middle East supply threats, a tightening inventory environment, and geopolitical uncertainty is likely to support crude prices in the near term. Traders are advised to monitor developments in Iraq, US inventory trends, and IEA reports for further price direction.