Turkey has facilitated the loading of KRG crude onto a tanker, raising the prospect of an escalating political dispute within Iraq and a legal battle between Baghdad and Ankara.

Iraq's southern exports are increasing on the back of infrastructure upgrades, partially compensating for ongoing security problems in the north.

Oil flows at around 100,000 bpd since Sunday are leading up to expected sales, possibly to Turkish refining company Tupras.

Oil from federally controlled oil fields could flow through Kurdistan's new export pipeline to Turkey within six months.

Oil sales through the northern pipeline were all but shut in due to sabotage, increasing Iraq's reliance on an expanding southern export system.

Because of chronic setbacks at the Fao storage depot, Iraq will fail to meet its export potential until at least 2018, preventing the sale of billions of dollars worth of oil.

As new offshore export facilities come online, Iraq has the opportunity to increase oil sales, despite enduring security and infrastructure challenges.

After months of infrastructure work, Iraq’s exports jumped by 551,000 bpd in February, with production set to rise even higher.