Oil falls as fear fades over Iraq conflict
The price of oil fell as fears receded that the insurgency roiling Iraq would affect oil production and exports
The price of oil fell Tuesday as fears receded that the insurgency roiling Iraq would affect its oil production and exports.
Islamic militants have been steadily expanding their grip on the country’s north, where they control a broad swath of territory. But the bulk of the country’s production and export operations are in the south, which have so far been spared in this month’s advance by the al-Qaeda inspired group. Iraq’s daily oil production hit 3.5 million barrels this year, up from nearly 2.4 million a day in 2009.
Benchmark U.S. crude for August delivery dropped 46 cents to $105.71 per barrel on the New York Mercantile Exchange. The contract dropped 66 cents to settle at $106.17 per barrel on Monday. Brent crude, used to price international oils, fell 30 cents to $114.82 a barrel in London.
“Brent crude oil fell after hitting technical resistance at overbought levels,” said Desmond Chua, market analyst at CMC Markets in Singapore. “This should signal a period of consolidation as the majority of the geopolitical premium has been priced in, unless we see new risk of disruptions to oil supplies in Iraq.”
Oil majors cut staff in Iraq on fears violence will spreadIraqi officials say southern regions that produce some 90 percent of the country's oil are =safe from the Islamist militants Energy
Oil prices climb again amid escalating violence in IraqSurge in oil prices lost momentum Friday as market awaited to see if the Iraqi conflict would threaten oil refineries Energy
Turkey brushes off criticism over Iraqi Kurdish oilIraq’s deputy prime minister for energy affairs threatened legal action against firms that purchased what he called 'smuggled oil' Energy
Iraq threatens legal action against any buyer of piped Kurdish oilIraq says State Oil Marketing Organisation has exclusive right to manage sales of crude from the country Energy