Crude oil price steady as investors monitor impact of Iraqi insurgency
The price of oil was steady Tuesday as investors monitored the insurgency in Iraq for any signs it could 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 West Texas Intermediate crude for August delivery dropped 14 cents to US$106.03 a barrel on the New York Mercantile Exchange. Brent crude, used to price international oils, rose 34 cents to US$114.46 a barrel in London.
The head of Organization of Petroleum Exporting Councties said Tuesday that the recent rise in crude oil prices is to blame on market fears and speculation, rather than any drop in output from Iraq.
OPEC Secretary General Abdullah Al-Badry said Iraq is "still producing as normal," with 95 per cent of its capacity in the country's south being unaffected by the violence.
On Wednesday, traders will get the latest U.S. supply data from the Energy Department. Analysts are expecting the report to show that oil supplies fell by two million barrels last week, according to a survey by Platts.
In other energy futures trading on the Nymex, wholesale gasoline rose two cents to US$3.13 a U.S. gallon (3.79 litre), heating oil rose one cent to US$3.04 a gallon and natural gas rose nine cents to US$4.54 per 1,000 cubic feet.
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