Agencies
Tokyo, Oct 17: Oil prices held near their highest levels in almost three weeks Tuesday after Iraqi government forces captured the major Kurdish-held oil city of Kirkuk in a response to a Kurdish independence referendum, raising worries about oil supply.
As Iraqi forces advanced, Kurdish operators briefly shut some 350,000 barrels per day of oil output at two large Kirkuk fields, citing security concerns, oil ministry sources on both sides said.
Although production resumed shortly thereafter, concerns about supply disruptions and further escalations in the confrontation between Baghdad and the Kurds kept investors on edge.
US crude traded at $51.78 a barrel, down slightly on the day, after having hit a high of $52.37 on Monday, a rise of 6.7 per cent from its three-week low of $49.10 hit on Oct 6.
Brent crude fetched $57.84 per barrel, flat on the day after having risen to as high as $58.47 on Monday.
US President Donald Trump had announced Friday that he had decided to decertify Iran’s compliance with the landmark deal reached in 2015. “I am announcing today that we cannot and will not make this certification,” Trump said at the White House as he unveiled a new Iran strategy of his administration.
Analysts said the unrest in the Middle East and possible US action on the Iran nuclear deal boosted the oil prices, as the traders feared geopolitical tensions could cut off oil exports from the region.
On the data front, the number of rigs operating in the US oil fields fell by 5 to a total of 743 rigs last week, oilfield service firm Baker Hughes said in its weekly report Friday.
The West Texas Intermediate for November delivery increased $0.42 to settle at 51.87 dollars a barrel on the New York Mercantile Exchange, while Brent crude for December delivery rose 0.65 dollar to close at 57.82 dollars a barrel on the London ICE Futures Exchange.
