Oil Price Hits Highs on Iraq Tensions

Reuters reported today that the price of oil could keep going up on fears that violence in Iraq could lead to a stoppage of oil exports. According to Reuters, exports from the north, where fighting is taking place, are thought to be safe for now, but analysts are noting the fine balance of the oil markets, suggesting that pressure on supplies could bring prices up even more.

As quoted in the publication:

Brent LCOc1 was up 18 cents at $113.20 per barrel as of 1259 GMT, off a peak of $114.69, its highest since September. It gained more than $3 on Thursday. U.S. crude CLc1 was up 18 cents at $106.71, off a high of $107.68, also a nine-month high. A day earlier it gained $2.13.

Olivier Jakob at Petromatrix consultancy told Reuters:

The market in general is trying to assess the risks on Iraq. There was a big market reaction and then the IEA (International Energy Agency) said it did not see a risk to supplies so the volatility is reflecting this.

Click here to read the full Reuters article.