Flat oil prices despite rebels seizing Iraq oilfields

Oil prices so far seem unaffected after the seizure of key Iraqi oilfields by rebels, according to the daily market report from npower. Steven Walker, Client Portfolio Manager at the […]

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By Vicky Ellis

Oil prices so far seem unaffected after the seizure of key Iraqi oilfields by rebels, according to the daily market report from npower.

Steven Walker, Client Portfolio Manager at the supplier’s Optimisation Desk said: “Oil markets are broadly flat despite Iraqi oilfields falling under control of Islamic state, the breakaway al-Qaeda group.”

At the end of last week the price of near dated Brent crude oil – that is, oil to be delivered soon – was around $106 and it stayed fairly similar this morning.

This is despite the amount which could be compromised in Iraq, added the analyst: “Together it’s an output of around 30,000 barrels per day at risk.”

On the gas market front in the UK, with fairly low demand because of current warm temperatures, it’s cheaper for gas storage facilities to buy gas this weekend, by around 1p per therm, he said.