Rising demand for oil drives prices up in Sulaymaniyah ahead of winter

SULAYMANIYAH — Oil prices in Sulaymaniyah have surged by 25,000 Iraqi dinars ($17) per barrel over the past two weeks as demand rises, a trend observed across the Kurdistan Region as residents prepare for the winter season.

Herish Khalid, an oil trader in Sulaymaniyah, told 964media that the price increase is closely tied to residents receiving their salaries and stocking up on oil for winter. “In the last two weeks, as soon as people received their salaries, they started buying oil, causing its price to increase,” Khalid said.

Khalid noted that prices could continue to rise if demand remains high, and rumors about oil price hikes have fueled the increase. “Whenever it is said that the oil price goes up, people rush to buy,” he explained.

“Last month, I was selling oil at 125,000 dinars ($83) per barrel, and now it’s 150,000 dinars ($100),” he said. “The price has gradually increased, rising by 5,000 dinars ($3) at a time, and it continues to do so with the demand.”

Salam Omar, head of oil distribution at the Sulaymaniyah Directorate of Oil and Minerals, told 964media that the price hike is mainly driven by the approaching winter season. He added that the Kurdistan Regional Government’s Ministry of Natural Resources announced that oil distribution in the mountainous areas of Sulaymaniyah would begin on Sept. 16, a move that could help stabilize prices.

Last year, the government began distributing oil to residents after mid-October, starting with highland and mountainous regions.

In Soran city, Erbil Governorate, residents have already begun stockpiling oil in preparation for winter, with prices reaching 150,000 dinars ($100) per barrel, up from summer rates.

During last winter, the price of a barrel of oil in Soran peaked at 195,000 dinars ($130).

Many areas in the Kurdistan Region, particularly those with mountainous terrain and harsh winters, frequently face rising oil prices and power shortages. These conditions push many residents, especially in remote areas, to rely on wood stoves for heating, contributing to deforestation and environmental degradation.