Crude oil prices rise on Mid-East violence

Brent crude rose as violence flared in Opec’s two biggest members Iraq and Saudi Arabia, raising tensions ahead of the producer group’s meeting on June 5 in Vienna.

Saudi Arabia’s King Salman vowed to punish those responsible for Friday’s suicide bombing in the world’s biggest crude-producing country. The Islamic State claimed responsibility for the bombing that killed 21 people. The fall of the Iraqi city of Ramadi, about 120km west of Baghdad, to IS fighters is one of the militants’ biggest successes since they swept across the north of the country a year ago.

Brent for July settlement rose 24c to $65.63 yesterday on the ICE Futures Europe exchange. The contract rose as much as 1.3% during the session. West Texas Intermediate oil futures gained 13c to $59.85 a barrel. The European benchmark crude traded at a premium of $5.81 to West Texas Intermediate.