Iraq conflict ‘threatens OPEC oil supply’

The escalating violence in Iraq threatens supplies from OPEC’s second largest oil producer, according to the daily market report from npower. “Repairs at the main pipeline from the Kirkuk oil […]

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By Priyanka Shrestha

The escalating violence in Iraq threatens supplies from OPEC’s second largest oil producer, according to the daily market report from npower.

“Repairs at the main pipeline from the Kirkuk oil field to the Mediterranean port of Ceyhan and Turkey have been halted as a result”, Client Portfolio Manager Steve Walker said.

The oil market “headed to the biggest weekly advance since December”, with Brent gaining a couple of dollars towards $114 per barrel, he added.

Continued storage injections are helping support demand, which is expected to continue in the coming weeks.

 

Imports through the BBL pipeline are “slightly lower” alongside a reduction in LNG send-out, the report said.

Mr Walker added: “Norwegian production levels remain mostly unchanged on the day. Within day power markets have followed suit, with wind feed in below 500MW today and reduced imports via the French and Dutch interconnectors.”