Thursday, December 18th4.1°C
24295
23934

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

24380


Recent Trending




Today's Market
S&P TSX14281.30+67.91
S&P CDNX666.83+7.80
DJIA17639.99283.12
Nasdaq4722.292+77.98
S&P 5002045.31+32.42
CDN Dollar0.8618+0.0031
Gold1195.40+1.10
Oil55.89-0.58
Lumber337.50+3.30
Natural Gas3.651-0.051

 
Okanagan Companies
Pacific Safety0.13+0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.26-0.01
Cantex0.03-0.005
Anavex Life Sciences0.18+0.0141
Metalex Ventures0.055+0.005
Russel Metals25.89-1.29
Copper Mountain Mining1.55+0.01
Colorado Resources0.1050.00
ReliaBrand Inc0.01990.00
Sunrise Resources Ltd0.055+0.005
Mission Ready Services0.215-0.005

 
23744


23617

FEATURED Property
2129784126 3984 Finnerty Rd
2 bedrooms 2 baths
$340,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Parenthood: Estates, insurance & taxes

It is now even more important to ensure your loved ones are well looked if anything should happen to you. Here are a few topics to consider helping you prepare for some of the unexpected events that c...


Managing your sales team

Managing a sales team can be quite a challenge. Harnessing individual personality preferences and getting everyone focused on the same goals, moving at the same pace, and working in collaboration to d...


Working under the table

They say there are only two things that are certain in life: death and taxes. Not exactly an uplifting thought, but true nonetheless. Some people try to avoid paying tax by “working under the ta...

_



24437




Member of BC Press Council


23910