Wednesday, January 28th0.9°C
24779
23931

Oil rises above $107 as Iraq fighting sparks supply fears

Oil rose above US$107 a barrel Friday as Iraq's widening insurgency raised the risk that plans to expand oil output from the No. 2 OPEC producer could be derailed.

Oil prices have risen to 10-month highs after an al-Qaida-inspired group vowed to march on Baghdad after capturing two key Iraqi cities this week, including Mosul, which is in an area that is a key gateway for the country's crude.

The violence in Iraq is mostly centred in the country's north, away from the major oil-producing regions of the south. The turmoil hasn't had a big effect on oil exports though it raises concerns about whether Iraq can continue rebuilding its oil infrastructure and boost output to meet global demand.

"The possibility of present supplies being disrupted is a low possibility at the moment. What's more likely is that future production is not going to go up in the near term," said Ryan Huang, market strategist at IG Markets in Singapore.

Iraq's oil production has risen by about a fifth since 2011 to 3.3 million barrels per day, making it the second biggest producer in OPEC.

After rising as high as $107.68, the benchmark U.S. oil contract for July delivery was up 46 cents to $106.99 a barrel in electronic trading on the New York Mercantile Exchange by 1:55 a.m. ET Friday. On Thursday, the contract jumped $2.13, or 2 per cent, to $106.53.

Brent crude, a benchmark for international oils, was up 70 cents to $113.12 a barrel on the ICE Futures exchange in London.

In other energy futures trading on Nymex:

— Wholesale gasoline fell 0.7 cent to $3.091 a gallon.

— Natural gas fell 1.6 cents to $4.746 per 1,000 cubic feet.

— Heating oil added 1.4 cents to $3.00 a gallon.

(TSX:ECA, TSX:IMO, TSX:SU, TSX:HSE, NYSE:BP, NYSE:COP, NYSE:XOM, NYSE:CVX, TSX:CNQ, TSX:TLM, TSX:COS.UN, TSX:CVE)

The Canadian Press


Read more Business News

23643


Recent Trending




Today's Market
S&P TSX14762.88-71.00
S&P CDNX674.32-2.47
DJIA17373.00-14.21
Nasdaq4679.70-1.797
S&P 5002024.94-4.61
CDN Dollar0.8033-0.0036
Gold1285.90-5.7999
Oil46.69-1.26
Lumber311.90+0.20
Natural Gas2.889-0.092

 
Okanagan Companies
Pacific Safety0.125+0.005
Knighthawk0.010.00
QHR Technologies Inc1.44+0.01
Cantex0.0350.00
Anavex Life Sciences0.1812+0.0012
Metalex Ventures0.035-0.005
Russel Metals24.29-0.04
Copper Mountain Mining0.99-0.06
Colorado Resources0.145-0.01
ReliaBrand Inc0.0069+0.0009
Sunrise Resources Ltd0.055+0.03
Mission Ready Services0.21-0.03

 



24910

FEATURED Property
213979510841 Westshore Road
3 bedrooms 3 baths
$359,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Service fit makes happy employees

Finding the right employees for the front lines of your company is key to developing a great service attitude within your company. It is just as important as hiring the right accountant, manager, sale...


How to price: workbook approach

In 2008 Self Counsel Press published my book - Pricing Strategies for Small Business. The book is now available in Europe, India, Russia and the United States. The purpose of the book was to make avai...


Ailing Parents: Tax Issues

If your parent has become ill, there can be several tax issues that come into play depending on the nature of their illness, their age and the role that family members are playing. For example, if you...

_








Member of BC Press Council


24222