Oil Prices Little Changed; Supply Concerns, Banking Crisis in Focus

• Crude prices moved in a narrow range in early Asian trade on Tuesday after rallying in the previous session, with oil markets focused on developments in the banking crisis as well as on supply concerns and indications of strengthening demand.
• Prices rose in the previous session after Turkey stopped pumping crude from Kurdistan via a pipeline following an arbitration decision that confirmed Baghdad's consent was needed to ship the oil. Turkey halted the pumping of Iraqi crude from the pipeline after Iraq won an arbitration case in which it said Turkey had violated a joint agreement by allowing the Kurdistan Regional Government (KRG) to export oil to Ceyhan without Baghdad's consent. Oil firms operating in the region have been left in limbo as they await the outcome of ongoing discussions between Ankara, Baghdad, and the KRG to find a way to resume exports.
• Monday's announcement that First Citizens BancShares Inc will acquire deposits and loans of failed Silicon Valley Bank spurred optimism about the condition of the banking sector that has roiled financial markets. U.S. authorities are also reportedly in early deliberations about expanding emergency lending facilities.
• Oil prices also drew support from indications of strong Chinese demand. China's crude oil imports are expected to rise 6.2% in 2023 from last year's level to 540 million tonnes, according to an annual forecast by a research unit of China National Petroleum Corp on Monday.

(Source: Reuters)