DNO shuts Kurdistan oil output as Iraq halts exports via Turkey
API said to report US crude inventories fall 6.1 million barrels
Coming up EIA supply report, 1430 GMT

LONDON, March 29 Reuters Oil rose for a third session on Wednesday as a halt to some exports from Iraqi Kurdistan raised concerns of tightening supply and as easing fears of a global banking crisis supported risk sentiment in the wider markets.

Crude exports of 450,000 barrels per day bpd from Iraq39;s semiautonomous northern Kurdistan region were halted on Saturday following an arbitration decision that confirmed Baghdad39;s consent was needed to ship the oil.

Brent crude climbed 42 cents, or 0.5, to 79.07 a barrel by 0802 GMT, while West Texas Intermediate U.S. crude increased 61 cents, or 0.8, to 73.81.

The longer the stoppage continues, the tighter the supply outlook will become, said Stephen Brennock of oil broker PVM.

On Wednesday, Norwegian oil firm DNO said it had begun shutting down production at its fields in Kurdistan. The company39;s Tawke and Peshkabir fields averaged output of 107,000 bpd in 2022, a quarter of total Kurdish exports.

Also helping sentiment was easing worries over the banking sector after weeks of volatility in the market that had sent oil to a 15month low on March 20, with investor nerves soothed by the sale of assets in collapsed lender Silicon Valley Bank.

The recent rebound in oil prices is mainly driven by sentiment. We can see that risk sentiment has recovered…