Oil Drops as Iraqi Insurgency Slows

Brent crude fell for a second day on signs violence in Iraq may not affect the nation’s oil supply. West Texas Intermediate dropped amid speculation that gains to a nine-month high last week were excessive.

Futures slid as much as 0.7 percent in London. Kurdish troops are defending Kirkuk, Iraq’s fourth-biggest oilfield, against Islamist militants after deploying outside their semi-autonomous region in the country’s north. Exports from Iraq’s Basrah oil terminal on the Persian Gulf are set to climb in July, preliminary cargo data compiled by Bloomberg show. The nation’s output hasn’t been hurt by the violence, the International Energy Agency said today.

Brent for August settlement dropped as much as 78 cents to $112.16 a barrel on the ICE Futures Europe exchange and was at $112.73 at 1:28 p.m. London time. The volume of all futures traded was about 50 percent above the 100-day average for the time of day. Prices are up 1.8 percent this year.

via Bloomberg

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza