Brent crude oil increased towards $107 a barrel today after the US approved air strikes against Islamist militants in Iraq.

Reuters reported that Brent crude was up 90 cents to $106.35 a barrel, while US crude increased 65 cents to $97.99 a barrel.

US President Barack Obama has approved limited air strikes on Iraq to stop the advance of the Isis forces.

The majority of oil production takes place in the southern part of Iraq, which is miles away from violence in the north.

"US President Barack Obama has approved limited air strikes on Iraq to stop the advance of the Isis forces."

Sunni militants seized some areas and reportedly came close to the oilfields in the Kurdish region.

The Kurdistan Regional Government revealed that its oil export pipeline to Turkey was operating normally at a rate of 120,000bpd.

Reuters reported that AFREN stopped production at its small Barda Rash oilfield in Kurdistan but Genel Energy said its Taq Taq and Tawke oilfields averaged 230,000bpd of oil this week and continued production.

Oil prices increased above $115 in mid-June on worries that violence in Iraq may disrupt oil supplies.

However, prices declined to $10 in the past six weeks after continued production from the southern oil fields in Iraq.

Defence Technology