News Column

Iraq,Kuwait,Libya,United States : OIL prices to rise due to violence in IRAQ and LIBYA

July 5, 2014

Kuwait s Oil Minister, Ali al-Omair expects oil prices to ease following a rise by unrest in oil-producing OPEC members Iraq and Libya.

Markets have witnessed a slight increase, but this rise will not last as prices will overturn. They started to ease and return to normal levels, already.

The rise is due to violence in Iraq and Libya, who are both oil producers and exporters in the Organisation of Petroleum Exporting Countries.

The violence in Iraq, where militants launched an offensive, has not impacted crude supplies. It has a direct bearing on global crude prices because the country is the second-largest oil exporter in the 12-nation OPEC after Saudi Arabia.

Iraq sits on more than 11% of the world's proven resources and produces 3.4 million barrels a day.

Militants overran swathes of territory, but have yet to threaten the key oil-producing region in the south.

In Libya, NATO-backed uprising toppled and killed former dictator Moamer Kadhafi, tensions was raised when a former general began a campaign to rid Benghazi of Islamists, drawing many regular army units to his cause.

Oil prices rose higher in Asia as dealers await the release of a US stockpiles report for clues about demand in the world's top crude consumer.

West Texas Intermediate delivery rose 10 cents to $105.44, and Brent crude gained 9 cents to $112.38.

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Source: TendersInfo (India)

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