Oil prices gained today, due to a recurrence of supply concerns from the Middle East region and due to rising confidence that the world’s biggest economies are gradually moving towards a stable recovery.
Brent crude rose by 44 cents to $111.08 a barrel, while US oil jumped 67 cents to $94.23, reported Reuters.
The bad weather on Sunday reduced oil exports from Iraq’s Basra port to 960,000 barrels per day (bpd), from 2.35 million bpd the previous day.
Iraq, which exports the majority of its crude from the southern ports of the Gulf, is facing difficulties in keeping shipments stable due to bad weather conditions and other technical issues.
Sunday’s bomb attack on Finance Minister Rafaie al-Esawi’s convoy west of Baghdad has also raised concerns about steady exports from the country.
Oil prices received support from the news that Iran’s Islamic Revolutionary Guard Corps (IRGC) naval force carried out military exercises in the Strait of Hormuz.
In Syria, tensions escalated when 36 people were killed in a bombardment carried out by government military in rebel-held areas on the outskirts of Damascus. Though not a major oil exporter, the incident in Syria could increase tensions among key producers and exporters in the region.
Growing concerns regarding oil supplies are seen as an indication of gradual recovery in the global economy.
Federal Reserve Bank president Charles L. Evans said that the US Federal Reserve’s decision in 2012 to attach monetary policy to specific economic conditions will help to improve the recovery and also control inflation.
Image: Iraq, which exports the majority of its crude from the southern ports of the Gulf, is facing difficulties in keeping oil shipments stable due to bad weather and technical issues. Photo courtesy of Javier Blas.