Get breaking news alerts via email

Click here to manage your alerts
Shiite tribal fighters raise their weapons and chant slogans against the al-Qaida-inspired Islamic State of Iraq and the Levant (ISIL) in the northwest Baghdad's Shula neighborhood, Iraq, Monday, June 16, 2014. Sunni militants captured a key northern Iraqi town along the highway to Syria early on Monday, compounding the woes of Iraq's Shiite-led government a week after it lost a vast swath of territory to the insurgents in the country's north. (AP Photo/ Karim Kadim)
Oil prices slip as U.S. deploys small force to Iraq
Energy » Presence of American soldiers eases concerns about disruption of crude supply.
First Published Jun 17 2014 09:55 am • Last Updated Jun 17 2014 09:55 am

The price of oil eased slightly Tuesday after the U.S. said it was deploying a small group of troops to Iraq, which helped soothe fears somewhat over the prospect of disruption to crude supplies.

By mid-afternoon in Europe, benchmark U.S crude for July delivery was down 18 cents to $106.72 a barrel on the New York Mercantile Exchange. Brent crude, a benchmark used to price international oils, was up 12 cents to $113.06 a barrel on the ICE Futures exchange in London.

Join the Discussion
Post a Comment

Up to 275 U.S. soldiers are being positioned in and around Iraq to protect the U.S. Embassy and other American interests as President Barack Obama weighs options for dealing with the al-Qaeda inspired militants who have captured a vast swath of the country’s north.

Iraq’s crude oil exports have so far not been disrupted but the conflict raises concern about whether the country can rebuild its oil infrastructure and meet global demand.

The International Energy Agency, which acts as a consultancy to developed economies, said its members’ oil reserves were at a "comfortable level" and that the agency was ready to respond quickly to any supply disruptions caused by the turmoil in Iraq.

"At this moment, not a single barrel of oil has been displaced compared to a week ago," IEA Executive Director Maria van der Hoeven said after the release of the agency’s medium-term oil market report. "But of course you can see that the market is worried."

The agency noted it had cut its expectations of Iraq’s oil output over the next five years to 4.5 million barrels a day by 2019, nearly half a million barrels a day less than forecast a year ago. That forecast was made before the recent violence in Iraq, so it could be lower, the IEA said.

In its report, the IEA also said that a persistent, significant loss of crude from Iraq would make it difficult for oil prices to return to earlier, lower levels of $90 per barrel.

In other energy futures trading:

— Wholesale gasoline added 0.85 cent to $3.049 a gallon.

story continues below
story continues below

— Natural gas lost 0.2 cent to $4.705 per 1,000 cubic feet.

— Heating oil rose 0.58 cent to $3.0037 a gallon.

Copyright 2014 The Salt Lake Tribune. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Top Reader Comments Read All Comments Post a Comment
Click here to read all comments   Click here to post a comment

About Reader Comments

Reader comments on sltrib.com are the opinions of the writer, not The Salt Lake Tribune. We will delete comments containing obscenities, personal attacks and inappropriate or offensive remarks. Flagrant or repeat violators will be banned. If you see an objectionable comment, please alert us by clicking the arrow on the upper right side of the comment and selecting "Flag comment as inappropriate". If you've recently registered with Disqus or aren't seeing your comments immediately, you may need to verify your email address. To do so, visit disqus.com/account.
See more about comments here.
Staying Connected
Contests and Promotions
  • Search Obituaries
  • Place an Obituary

  • Search Cars
  • Search Homes
  • Search Jobs
  • Search Marketplace
  • Search Legal Notices

  • Other Services
  • Advertise With Us
  • Subscribe to the Newspaper
  • Access your e-Edition
  • Frequently Asked Questions
  • Contact a newsroom staff member
  • Access the Trib Archives
  • Privacy Policy
  • Missing your paper? Need to place your paper on vacation hold? For this and any other subscription related needs, click here or call 801.204.6100.