Oil suffered one of its biggest weekly falls of the year as concerns about a loss of supply from Iraq faded and investors banked profits.
Brent, the international oil marker, hit a nine-month high of $115.71 a barrel earlier this month on fears production could be affected by the lightening advance of the Islamic State of Iraq and the Levant (known as Isis) across northern Iraq…
On Friday, ICE Brent August was unchanged at $113.37, leaving the contract down 1.4 per cent from Monday’s opening price – its first weekly drop since the violence in Iraq erupted.
Amrita Sen, analyst at Energy Aspects, a consultancy, said the “fear factor” was slowly coming out of the oil price. “Isis has stalled in the north, which means the fields in the south remain unaffected,” she said.
So far, the escalating violence in Iraq has not dented the country’s overall oil production, with the country’s oil minister saying this week that exports had averaged around 2.5m b/d in June.