On Tuesday, oil stabilized, holding on to revenues made because fighting between Iraqi and Kurdish troops actually threatened supplies from northern Iraq. Meanwhile, political tension grew between Iran and the United States.
Brent crude futures LCOc1 gained 5 cents reaching $57.87 a barrel, earning nearly a third from its mid-year levels. As for American West Texas Intermediate crude futures CLc1, they stood still sticking $51.87.
On Monday, Iraqi troops managed to capture the Kurdish-held oil city of Kirkuk, in a response to a Kurdish independence referendum. Additionally, there were unconfirmed reports that Kurdish troops had shut approximately 350,000 barrels a of crude output from key fields.
Tension between Iran and the United States is going up, also lifting the global risk premium for crude.
On Friday, Donald Trump rejected certifying Iran’s compliance over a nuclear deal, thus leaving Congress no more 60 days to work out further action against Iran.
