Iraq Unrest Keeping Oil Traders On Their Toes

Energy traders are closely watching renewed fighting in Iraq, trying to gauge worst- and best-case scenarios for OPEC’s second-biggest oil producer—and the coming weeks could be critical.

“This situation now certainly has the market on tenterhooks. It’s why we’re seeing the price of oil somewhat elevated” despite a period of relatively contained demand, said John Kilduff, founding partner of commodities-focused investment firm AgainCapital. “This is a very troubling development for the oil market for consumer nations,” Kilduff said.

This month, the Iraqi government of Prime Minister Nouri al-Maliki lost control of the city of Fallujah to the Islamic State of Iraq and the Levant (ISIL), a group that wants to establish a strict religious state across western Iraq’s Anbar province and eastern Syria.

CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.