World oil prices are propelled by the coming back of a risk premium while growing collisions in Iraq might affect supplies, as well as the U.S.-Iran deal uncertainty.
Following lengthy period of range-bound trading when OPEC-initiated supply reduction held up crude prices though expanding production of the United States limited markets, prices have grown quite palpably in October and the demand is higher than in the several previous months.
Notwithstanding the drop in prices after Iraqis regained control over oil fields previously occupied by Kurds, Brent crude futures remained as high as $57.70 this morning, that is 2.7% above the last close of the preceding week and about a third more than in the middle of the year.
U.S. WTI crude futures slipped a little to $51.78 for a barrel, that is 2% above the last close of the preceding week and about a quarter more than in the middle of the year.
The prices uplift happened after the reports of Iraqi government reclaiming the oil city of Kirkuk from the Kurds yesterday, as a reaction to a Kurdish referendum on independence. Reportedly the Kurds had closed production from other two big oil fields with volume of 350,000 barrels daily because of security issues.