Unrest in the Middle East push up oil prices

Oil priceOil. Photo: Pixabay

Oil prices and the krone exchange rate has risen as a result of increased tension between Iraqi authorities and the Kurds in Northern Iraq, according to DNB Markets’ morning report.


The oil price, measured by Brent Blend, has seen an increase of well over two percent since Friday and is now approaching the 58 dollar barrel. Increased tension between Iraqi authorities and Kurds about the oil town Kirkuk has contributed to the rise, writes DNB Markets in a morning report Monday.

Kirkuk exports nearly 550,000 barrels daily, and fear of further flare of the conflict has pushed up oil prices. The increased oil price has contributed to strengthening the krone exchange rate. The price of one euro has fallen by 0.3 per cent and costs around 9.32 kroner, according to the report.

The tension in the area has increased after the Kurdish Autonomous Region held a referendum on independence in September, and the government has announced an offensive. On Monday morning, Iraqi government forces entered the Kurdish-controlled city, according to both Kurdish and Iraqi sources.

It was reported Monday that there were shootings south of Kirkuk, and Iraqi forces reported that they had taken control of roads and infrastructure near the northern Iraqi city.

Kurdish officials also informed that Iraqi government forces and military soldiers with the support of the government in Baghdad have initiated a major attack on several fronts to conquer the city.


©  NTB Scanpix / Norway Today