The relative price stability that characterised Brent and Tapis in the first half of 2014 has been shaken of late by unexpectedly severe sectarian turmoil in Iraq. After Mosul fell on 10 June, Brent jumped 4% in a week and broke through $115 per barrel by 19 June. While the deterioration in the security situation in OPEC’s second largest producer is yet to dent Iraqi oil exports and with prices moderating somewhat in late June, the spectre of further unrest will likely weigh on the minds of investors.
Read the full report: Commodities Research