Iraq disruption drives up Brent Crude

Iraq disruption drives up Brent Crude

A global rise in commodity values has bolstered the FTSE 100 despite the pound strengthening.

 

Despite the commodity news the index could only muster a change of 1.51 from the start of trading leaving it at 7,536.95 at 12.30.

 

Mike Van Dulken of Accendo Markets said: “Equities are quiet but retain their bullish bias thanks to China inflation data boosting metals and their miners.  This increases the chances of this being another geopolitically inspired pause for breath before another leg higher”.

 

Brent crude has risen almost a dollar (0.88) to $58.05 as fighting has broken out in Iraq, creating fears over supply.

 

ETX Capital analyst Neil Wilson had this to say: “Any disruption may prove temporary with neither side wanting to shut-in oil production for long. The prospect of fresh US sanctions on Iran may offer longer-term support to prices, although again any sanction regime will be limited in scope given that the US position is at odds with the rest of the international community.”

 

“With around 550-600k barrels a day pumped from the region, worth about one-tenth of Iraq’s production, the escalating conflict will offer support for prices. This is really the fallout from the referendum on September 25th in which 93% of the population in the KRG-administered area voted for independence from Iraq.”

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