Mark your calendars for Kurdish independence vote on September 25th

Mark your calendars on September 25th, as Kurdistan will hold its independence vote on that day. This could turn out to be an important event for energy commodities, especially crude oil as on September 25th, citizens of the northern region of Kurdistan, a semi-autonomous area of Iraq, will vote in a referendum for national independence. Iraq is the second largest OPEC producer and oil-rich Kurdistan plays a key part in the production. Kurdistan produces at least 10 percent of total Iraqi production and has the potential to produce more once independent. If the referendum passes through, which is likely to be the most probable outcome, it will divide the country of Iraq into two parts and will increase the tensions in the Middle East, especially between Kurds and Turks.

There are significant barriers to an independent Kurdistan. The referendum has very little international support, and the United States, the EU, and others have come out against it. It also faces vigorous opposition in Baghdad. Prime Minister of Iraq, Haider Al-Abadi has called to suspend the vote until the Islamic State militants are defeated. He also called the referendum illegitimate and unconstitutional. Kurds have so far played an important role in ousting ISIS/ISIL from the region. Turkish President Recep Tayipp Erdogan has also called for the referendum to be canceled.