Business
Oil prices up after Obama authorises Iraq air strikes
Publish Date: Aug 08, 2014
Oil prices up after Obama authorises Iraq air strikes
US President Barack Obama said he authorized air strikes and relief supply drops in Iraq to prevent genocide by Islamist extremists against minorities. PHOTO / AFP
  • mail
  • img
newvision

SINGAPORE - Oil prices rose in Asia Friday after US President Barack Obama said he had authorised air strikes against Sunni extremist militants in key crude producer Iraq.


US benchmark West Texas Intermediate for September delivery rose 35 cents to $97.69 while Brent for September gained 67 cents to $106.11 in mid-morning trade.


Obama in an address late Thursday said he ordered the air strikes to prevent "genocide" by the so-called Islamic State fighters against the besieged Yazidi minority in Iraq's north.


"I therefore authorized targeted air strikes if necessary to help forces in Iraq as they fight to break the siege and protect the civilians trapped there," Obama said.


He did not say whether air strikes have already been carried out.


Desmond Chua, market analyst at CMC Markets in Singapore, said the development could add "significant risk premium to oil prices" as dealers worry about potential supply disruptions.


"The announcement certainly edges up the geopolitical concerns about Iraq and the Middle East region, and comes as a bit of a surprise to investors," Chua told AFP.


Islamic State insurgents now control large swathes of Iraq's north and west. The sweeping offensive that began on June 9, preventing Baghdad from exporting oil via a pipeline to Turkey and by road to Jordan.


Iraq's oil ministry on July 24 said crude exports totalled 2.42 million barrels per day in June, falling far short of a budgeted projection of 3.4 million bpd.


As the number-two producer in the OPEC cartel, Iraq's 11 percent of proven world reserves plays a key role on world markets and prices after violence disrupted oil exports from Syria and Libya.


The dip in exports adds to the woes of Iraq, which is heavily dependent on oil revenues while spending more on military equipment to battle the Islamic State group.
 

Related Stories

Obama authorizes air strikes to prevent Iraq 'genocide'

Oil prices extend falls

 

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
Oil tumbles in Asia as Greek vote shakes world markets
Oil fell in Asia Monday as investors digested the implications of Greece rejecting tough austerity demands from creditors....
Gov’t cautioned on trade agreements signing
Government has been cautioned against signing international trade and bilateral agreements without scrutinizing their impact on indigenous business firms....
Domesticate SDGs to household level – minister
Uganda’s state minister for economic monitoring, Henry Banyenzaki, has called for the domestication of the Sustainable Development Goals (SDGs)....
Media trained on intellectual property rights
Media practitioners have been sensitized on the importance of intellectual property rights and the procedures for registration...
Greek crisis could weaken Ugandan shilling further
The failure by Greece to beat Tuesday’s deadline to repay $1.7b (sh5.4 trillion) owed to the IMF could trigger a further depreciation of the Uganda shilling....
Survey shows Greek referendum too close to call
Greece is almost evenly split over a crucial weekend referendum that could decide its financial fate....
Do you think Ugandan graduates are the worst in the region?
Yes
No
Can't Say
follow us
subscribe to our news letter