Crude Oil Price Rises as US Strikes Iraqi Oil Fields
Having fallen throughout most of the week before last, crude oil was on the up again last week. It started the week at around 91.70 but on Thursday had reached 93.33 and by the weekend was up to 93.70.
The price rose after data showed that the US economy expanded in the second quarter and the start of US-led airstrikes against ISIS in Syria led to concerns that the oil supply may be disrupted. It is thought that an expansion in the US economy will lead to greater consumption of fuel. Furthermore, the US has said it is specifically targeting ISIS’ oil fields in Iraq.
Nonetheless, these concerns are balanced by a generally healthy oil supply from the rest of the world. However, if the US-led airstrikes continue to target Middle East oil fields then the price of crude oil is likely to continue rising.