Oil prices fell on Tuesday after strong gains in the previous session on fears Turkey was going to refuse to receive oil from the semi-autonomous Kurdistan region of Iraq.

Kurdistan held an independence in defiance of central Iraqi government which drew condemnation from both Turkey and Iran.

The Kurdistan region voted decisively for independence but the Iraqi refused to recognise the result.

Turkey and Iran have significant Kurdish populations and fear the independence referendum could lead to calls for similar votes in the regions close to Kurdistan.

Turkey considers many Kurdish military forces fighting in Iraq against ISIS as terrorist organisations and see an independent Kurdistan destabilising the region.

The Turkish oil pipeline going through Ceyhan usually pumps around 500,000-600,000 barrels of oil per day. Oil prices have rallied sharply over recent days on the prospect of Ceyhan supply ceasing and putting pressure on supply, adding to OPEC cuts currently in place.

The recent gains added to a strong run in Brent oil which is in a technical bull market having rallied over 20% from June lows.

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