Oil Futures Above $107 on Iraq Fighting 

Oil rose above $107 a barrel Friday as Iraq’s widening insurgency raised the risk that plans to expand oil output from the number twoOPEC producer could be derailed. Oil prices have risen to 10-month highs after an al-Qaida-inspired group vowed to march on Baghdad after capturing two key Iraqi cities this week, including Mosul, which is in an area that is a key gateway for the country’s crude. The violence in Iraq is mostly centered in the country’s north, away from the major oil-producing regions of the south. The turmoil hasn’t had a big effect on oil exports though it raises concerns about whether Iraq can continue rebuilding its oil infrastructure and boost output to meet global demand. Iraq’s oil production has risen by about a fifth since 2011 to 3.3 million barrels per day, making it the second biggest producer in OPEC. After rising as high as $107.68, the benchmark U.S. oil contract for July delivery was up 46 cents to $106.99 a barrel in electronic trading on the New York Mercantile Exchange by 0555 GMT. On Thursday, the contract jumped $2.13, or two percent, to $106.53.
Source: AP

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