Brent increases above $110 on Iraq supply disruption worries

Brent futures rose above $110 a barrel today on supply disruption worries in Iraq.

Reuters reported that Brent futures gained 35 cents to $110.30 a barrel, while US oil increased 18 cents to $104.58 a barrel.

The news agency noted that an unanticipated draw in US oil stocks further supported oil prices, which are anticipated to increase to approximately $111.50 a barrel in the next two days.

The Islamic State of Iraq and Al-Shams (ISIS) recently seized Mosul city, while an al Qaeda splinter group has reportedly entered the country’s largest refinery at Baiji.

Iraq Oil Minister Abdul Kareem Luaibi was quoted by the news agency as saying that key southern oilfield export facilities were "very, very safe", with shipments running at around 2.6 million barrels per day.

Investors are watching Libya’s moves after the country’s Oil Minister Omar Shakmak recently announced its intention to produce between 800,000bpd and 900,000bpd in 2014 if output is restored, as protests reduced production to around 200,000bpd.

The US is due to unveil key economic data later today, while China will release its industrial production figures on Friday.