Monday, October 15, 2007

Oil market sensitive to Iraq news

It's amazing how sensitive the oil market is to any negative news from Iraq.  This shows how important Iraqi oil is to the future of the world oil market. 

Oil Rises Over $85 to a Record on Increased Turkey-Iraq Tension

By Mark Shenk

Oct. 15 (Bloomberg) -- Crude oil rose above $85 a barrel for the first time in New York on concern Turkish forces may pursue Kurdish militants in Iraq, curbing shipments as refiners prepare for the peak-demand heating season.

Prices climbed as much as 1.9 percent because Turkey's military may attack Kurdish bases in Iraq, which has the world's third-largest oil reserves. Futures also increased after the Organization of Petroleum Exporting Countries said production outside the group will be lower than previously forecast.

``Everything imaginable is going wrong as far as the oil market is concerned,'' said Robert Ebel, chairman of the energy program at the Center for Strategic and International Studies in Washington. ``Turkey is saber rattling, Iraq isn't calming down, Iran is also saber rattling and supplies are tight.''


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