Oil futures rose above $110 today on expectations of a decline in US gasoline stockpiles and Iraq supply disruption worries.
Iraq’s second largest city, Mosul, has been seized by the Islamic State of Iraq and Al-Shams (ISIS) earlier this week.
Militants have reportedly entered into the oil refinery town of Baiji, damaging the court house and police station.
Iraq has received support from the US as the current situation in the country is expected to affect oil production.
Iraq Oil Minister Abdul Kareem Luaibi was quoted by Reuters as saying that key southern oilfield export facilities were "very, very safe", with shipments running at around 2.6 million barrels per day.
The American Petroleum Institute’s data revealed that US gasoline stocks declined by 441,000 barrels last week.
Investors are waiting for confirmation of industry data, which is due to be revealed by the Energy Information Administration (EIA) later today.
They are also awaiting the outcome of the Organization of the Petroleum Exporting Countries (OPEC) meeting, which may decide oil output targets.
The group, which is meeting in Vienna, is anticipated to maintain its production target at 30 million barrels per day until prices hold around the existing levels.