Tags: Oil | Prices | Crude | Iraq

Brent Oil Gains on Iraq Unrest

Wednesday, 18 Jun 2014 06:18 PM


  Comment  |
   Contact Us  |
|  A   A  
  Copy Shortlink

Global oil prices diverged Wednesday as the leading U.S. benchmark fell following an American energy inventory report while the main European contract rose in response to more violence in Iraq.

U.S. benchmark West Texas Intermediate for July delivery fell 39 cents to $105.97 a barrel on the New York Mercantile Exchange.

But Brent oil for August delivery, which is traded in London, advanced 81 cents to $114.26 a barrel.

Wednesday's trade was similar to Tuesday, when WTI fell ahead of the U.S. supply report, but Brent gained due to Iraq.

The U.S. Energy Information Administration's weekly inventory report showed commercial crude stocks in the world's biggest crude consumer fell by 600,000 barrels, less than the 1.1 million drop on average projected by analysts surveyed by The Wall Street Journal.

The U.S. inventory report also showed a bigger-than-expected increase in US gasoline supplies.

The report "suggests the U.S. market continues to suffer from a weak fundamental picture," said Gene McGillian, a broker and analyst at Tradition Energy.

But McGillian noted that WTI's only modest price fall reflected the U.S. oil market is also concerned about Iraq, even though it would be less directly affected by a disruption to Iraqi supplies than the European market.

"As long as there's a threat we could have a regional crisis in Iraq or problems in Ukraine -- I just don't see the market suffering a pullback," he said.

On Wednesday, Iraq's foreign minister said Iraq had officially asked the U.S. to conduct air strikes against rebels. Meanwhile, militants attacked the Baiji oil refinery and sized more territory in the north.

Analysts said a takeover of Baiji by the rebels could pressure domestic fuel supply in northern Iraq.

© Copyright 2014 Bloomberg News. All rights reserved.

  Comment  |
   Contact Us  |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Retype Email:
Zip Code:
Privacy: We never share your email.
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Ever Hear of JustFab? Now You Have - It's Worth $1 Billion

Thursday, 28 Aug 2014 19:51 PM

JustFab Inc., an e-commerce startup with brands including ShoeDazzle and FabKids, has become the latest company to be va . . .

Ukraine Conflict Weighs on Markets; Retailers Fall

Thursday, 28 Aug 2014 16:09 PM

Worsening tensions in Ukraine and some weak showings from retailers sent U.S. stocks lower for the first time this week. . . .

Wheat Jumps to 8-Week High on Rising Black Sea Region Tension

Thursday, 28 Aug 2014 16:06 PM

Wheat rose to the highest in eight weeks in Chicago on Thursday amid concerns that supplies from the Black Sea region wi . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved