Oil keeps rising, nears $107 on Iraq fighting

Published on NewsOK Modified: June 13, 2014 at 6:42 am •  Published: June 13, 2014
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The price of oil continued to climb Friday, nearing $107 a barrel as Iraq's widening insurgency fueled concerns that crude supplies from OPEC's No. 2 producer could be hurt.

After jumping over $2 on Thursday, the benchmark U.S. oil contract for July delivery was up another 44 cents to $106.97 a barrel in electronic trading on the New York Mercantile Exchange. It had earlier hit a high of $107.68.

Brent crude, a benchmark for international oils, was up 54 cents to $112.96 a barrel on the ICE Futures exchange in London.

Oil prices have risen to 10-month highs after an al-Qaida-inspired group vowed to march on Baghdad after capturing two key Iraqi cities this week, including Mosul, which is in an area that is a key gateway for the country's crude.

The violence in Iraq is mostly centered in the country's north, away from the major oil-producing regions of the south. The turmoil hasn't yet had a big effect on oil exports, though it raises concerns about whether Iraq can continue rebuilding its oil infrastructure and boost output to meet global demand.