Tensions between Iraq and Kurdistan cause a rise in oil prices

Oil prices continued their recent rally on Wednesday morning, with Brent nearing $80 and WTI at $74, and there is a matter of international politics behind it. The dispute between Kurdistan and the Iraqi government that sparked the latest price hike has not yet been resolved, keeping some 400,000 bpd out of the oil market. Iraq says it is in favor of restarting oil flows, but insists that Iraq's state oil company handles oil exports from Kurdistan. An oil dispute between the Iraqi government and the semi-autonomous Kurdistan region, also involving Turkey, escalated this week, sending oil prices soaring. Brent is approaching $80 and WTI has surpassed $73 a barrel at the time of writing, while Kurdish oil flows have remained closed for the fourth consecutive day. The dispute erupted last week, leading the Iraqi government to block oil exports from Kurdistan to Turkey. The closure followed a ruling by the International Chamber of Commerce in favor of Baghdad in a lawsuit against Turkey.