Oil prices rise on Middle East fighting, awaiting OPEC comments
Oil prices rose this morning following fighting in Iraq and Yemen, but Iranian comments that OPEC was unlikely to cut output as well as signs of strengthening U.S. production capped gains.
Front-month Brent futures LCOc1 were up 1 percent, or 65 cents, at $67.46 a barrel by 11.54 a.m. ET. U.S. crude CLc1 rose 79 cents to $60.48.
Prices were supported by concerns that conflict in Iraq and Yemen could disrupt supplies after Islamic State militants said they had taken control of the Iraqi city of Ramadi in a big blow to the government.
In Yemen, a Saudi-led coalition resumed air strikes against Houthi militia in Aden, a port-city on the shores of key Middle East oil routes.
Despite these Middle East conflicts, analysts said oil markets remained oversupplied, and that the glut could worsen if U.S.-production picked up and output by producer-club OPEC remained strong.