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Oil rises 1 per cent following Iraqi Kurdish conflict

Bloomberg’s Lynn Doan reports on the price and production of oil, and on the impact of Iraq and Kurdish clashes on oil output.

There was a reaction on oil prices yesterday, a 1 per cent rise on US benchmark WTI and also on Brent average.

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The price of Brent oil was at $57.98 up from $57.17 and U.S. WTI crude was at $52.09 up from $51.45.

But it  was somewhat subdued. Doan argues that a 270,000 oil supply shortfall as a result of the conflict in Kirkuk should have perhaps triggered a bigger market reaction. She believes speculators  are in a wait and see mode, looking for more concrete evidence as to how the conflict will play out in the long run.

Demand is also lower at this period of time as refineries conduct their annual maintenance, so this could also impact crude pricing in the near future.

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