Iraq conflict trigger rising oil prices, Iraq manufacturer and second-largest exporter after the OPEC member Saudi Arabia

Geopolitical situation in the oil-producing countries affect price

Iraq conflict trigger rising oil prices, Iraq manufacturer and second-largest exporter after the OPEC member Saudi Arabia


Oil prices rose to the highest level in nine months amid concerns over developments in Iraq that could affect global supply.

Brent crude rose about 3% to $ 113.27 per barrel, while U.S. crude oil rose more than 2% to $ 106.71, the highest for a second interpretation since September.

The militants have taken over two towns in Iraq, and encourages the United States to consider "all options" to help Iraq.

Iraq is the second largest oil producer in the Organization of Petroleum Exporting Countries (OPEC).

"If this makes Iraq a conflict eliminated as an exporter, this will have a significant impact on prices," said Christopher Bellew, a trader at Jefferies Bache.

This development is also detrimental to the global stock market. U.S. stocks fell on Thursday and the major Asian stock indexes also fell in early trading on Friday.

Middle East is one of the largest oil producing regions in the world and there are concerns that if this conflict rises further, it may harm the global oil supply.

On Thursday, Save U.S. President Barack Obama said his administration was looking at "all options", including military action, to help Iraq fight against militants. BBC