Oil heads towards $57 a barrel as Iraq’s pipeline increases output to Ceyhan
London — Oil fell towards $57 a barrel on Tuesday as crude flows through Iraq’s northern pipeline to Ceyhan in Turkey rose further, offsetting an expected fall in US crude inventories. Pumping along the pipeline rose to 300,000 barrels per day (bpd) on Tuesday, a shipping source said, adding to a gain on Monday. Output fell from 600,000 bpd last week when Iraqi forces regained control of oil fields from Kurdish fighters. "The increase is minimal and is way below the normal 600,000 bpd; nevertheless the market took it as a positive development as far as oil supply is concerned," said Tamas Varga of oil broker PVM, referring to the gain in flows on Monday. Brent crude, the global benchmark, was down 16c at $57.21 by 8.53am GMT. It reached $59.49 on September 26, its highest since July 2015. US crude fell 12c to $51.78. The disruption to exports from Iraq, the second-largest producer in oil cartel Opec, has helped support the market, adding to the supply cut being carried out by Opec a...
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