Oil prices rose more than $3 on Monday as a halt to some exports from Iraq’s Kurdistan region added to worries about oil supplies while a U.S. banking acquisition eased worries that financial turmoil could hurt the economy and curtail fuel demand.
Brent crude futures settled up $3.13, or 4.2%, at $78.12 a barrel. West Texas Intermediate U.S. crude closed $3.55, or 5.1%, higher at $72.81.
Brent gained 2.8% last week while WTI rebounded by 3.8% as jitters in the banking sector eased.
Prices received a lift as Turkey stopped pumping crude from Kurdistan via a pipeline following an arbitration decision that confirmed Baghdad’s consent was needed to ship the oil. The exports amount to about half a percent of global oil supply, or 450,000 barrels per day (bpd).
Loss of oil supplies from Kurdistan could offset the impact of Russian production and supplies finding their way to market, said John Kilduff, partner at Again Capital LLC in New York. It also could force production cuts in the Kurdistan region.
via Reuters
