Iraq Steps In at West Qurna 2 as Lukoil Cites Sanctions Constraints

Iraq has approved a plan to assume operational control of the West Qurna 2 oilfield after Russia’s Lukoil declared force majeure in November, citing difficulties tied to Western sanctions, according to Reuters. The move is designed to secure uninterrupted output from one of Iraq’s key producing fields, which pumps about 470,000 barrels per day, and comes at a time when global crude benchmarks, including Oil – Brent Crude and Oil – US Crude, remain sensitive to supply risks from major producers. The decision underscores Baghdad’s willingness to intervene directly to maintain production stability and could influence perceptions of geopolitical and operational risk premia in the oil market. Natural gas dynamics are also in focus for regional energy balances, making Natural Gas pricing relevant for investors tracking broader commodity volatility.

Over the past month, prices for Oil – US Crude have fallen about 4.15%, while Oil – Brent Crude is down roughly 3.83%, reflecting a market where concerns over demand and broader macro conditions have outweighed localized supply developments such as West Qurna 2. Both crude benchmarks currently flash a bearish short-term outlook, with a 1-day technical signal of Strong Sell for US crude and Strong Sell for Brent, suggesting momentum remains to the downside despite ongoing geopolitical uncertainties. In contrast, Natural Gas has dropped about 23.69% over the last month, indicating substantial weakness amid ample supply and softer seasonal demand, and its 1-day technical indicator stands at Sell, reinforcing a negative near-term technical picture. Investors can explore more updates, prices, and analysis across global markets at Commodities.