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
Vision Mobile products and services
Vision Mobile (U) Ltd provides state of the art SMS, MMS, WEB, USSD & WAP based products, services and applications with a mission to provide the most advanced Value Add Services in East, Central and the rest of Africa....
Ugandans cautioned of fake, dirty soft drinks on market
As the Uganda National Bureau of standards (UNBS) steps up efforts to increase compliance to standards, a section of manufactures of juice are still not conforming to the required procedures and standards....
UTB to promote domestic tourism through discounted tours
In its commitment to promote domestic tourism with a bang this year, the Uganda Tourism Board in partnership with the Uganda Safari Guides Association and Uganda Wildlife Authority has started providing highly discounted domestic adventures around the country...
Digital migration: Pay TV service providers rush to cash in as deadline looms
As the June 30, 2015 global digital migration deadlines nears, pay television services providers are rushing to cash in from the members of the public who would want to do last minute purchases....
MTN changes loading, checking balance codes
In an effort to improve the user experience of our customers, MTN has implemented the standard industry codes for loading airtime and checking balance for all Mobile voice customers in Uganda....
Seven tips every startup needs to follow in 2015
Did you know that in 2014 the world hit 52% of its entrepreneurial capacity? That’s according to the Global Entrepreneurship Index, which hosted last year’s 2014 Global Entrepreneurship Summit in Morocco....
Is KCCA doing enough to curb poor hygeine?
Yes
No
Can't Say
follow us
subscribe to our news letter