Violence in Iraq raises oil prices

Iraq’s oil business is being seriously threatened by the political turmoil and string of violent attacks the country has been facing lately.

The International Energy Agency issued the warning, also stating that oil demand is increasing due to a stronger and more stable global economy.

Iraq, with immense oil reserves, is the second-largest producer of OPEC, Organisation of Petroleum Exporting Countries.

However, oil exports from Iraq’s northern part of the country have been shut down since March and now, due to recent Sunny extremists attacks, two more oil refineries had been either closed or captured.

OPEC’s oil business has also been hit by the turmoil in Libya, sanctions imposed in Iran and oil theft in Nigeria.

All these events led to an increase in oil prices which jumped last week to $115 per barrel, the highest number since September.

As violence continues to spread in Iraq, we may see oil prices increase even further.