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Oil rises again, nears $107 on Iraq fighting

Published on NewsOK Modified: June 13, 2014 at 3:27 pm •  Published: June 13, 2014

The price of oil rose near $107 a barrel Friday, as Iraq's widening insurgency fueled concerns that crude supplies from OPEC's No. 2 producer could be slowed.

After jumping over $2 on Thursday, the benchmark U.S. oil contract for July delivery rose 38 cents to close at $106.91 in New York. For the week, the U.S. benchmark rose 4.1 percent.

Brent crude, a benchmark for international oils used by many U.S. refineries, gained 39 cents to close at $113.41 a barrel in London. Brent rose 4.4 percent this week.

Oil prices have risen to 10-month highs after an al-Qaida-inspired group 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 group has vowed to march on Baghdad.

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 slowed exports, though it raises concerns about whether Iraq can continue rebuilding its oil infrastructure and boost output to meet global demand.

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