Oil rises as conflict in Iraq sparks supply disruption fears

OIL rose yesterday in choppy trading, with US crude reaching $100 a barrel, as violence in Iraq and news of upcoming Iranian navy exercises raised fears of potential supply disruptions.

Oil also received a boost from separate reports showing jobless claims fell last week in the United States, while consumer sentiment rose more than expected in December, offsetting news that third-quarter economic growth was pegged lower than the previous estimate.

Dominick Chirichella, analyst at New York’s Energy Management Institute, said financial markets were entering a period of low liquidity and could expect relatively large intraday moves over the end-year festive season.