Oil heads for weekly surge as Iraqi supply disruption continues
BNN Bloomberg
Oil headed for a weekly surge of about seven per cent as an ongoing disruption to Iraqi exports tightened the market ahead of U.S. inflation data.
West Texas Intermediate futures fell to around US$74 a barrel on Friday after closing almost two per cent higher in the previous session. Crude dropped following the European market open, which has so far presented a mixed picture in equities and a rise in the dollar. The strengthening greenback pressured the price of oil and broader commodities, as they're priced in the U.S. currency.
Prices have been supported this week by the ongoing shutdown of Iraq's oil exports following a dispute between Baghdad and Kurdistan. The impasse has worsened, as Gulf Keystone Petroleum Ltd is to become the latest producer to cut production. Talks between officials from Kurdistan and the Iraqi federal government are set to take place next week, which may see the resumption of over 400,000 barrels a day of Iraqi oil exports which go through Turkey.
China's recovery showed more signs of strength in March, with manufacturing continuing to expand and construction picking up. Most market watchers are betting the nation's rebound will help to underpin higher prices this year.
