Kurdish fears push oils prices up

Fresh impetus to the upward move in global crude oil prices was afforded by growing fears that Turkey would move to invade the Kurdish region of Northern Iraq in pursuit of terrorists associated with the Kurdish Workers Party who have killed 15 Turkish soldiers in recent attacks.

Whilst the action would have no direct impact upon oil production we have seen, through events such as the Israeli attacks in Lebanon last year, how destabilising influences in the Middle East, with no direct bearing oil production, result in a bullish move in crude prices. As a result of the news WTI rose to a record $84.05 and Brent hit $80.55.

This morning Brent commences the session at around $80.35. With supply concerns ahead of the winter remaining at the forefront of traders minds the likelihood of a smooth advance to test the previous Brent crude high of $81.05 in the coming sessions is high. With strong support at $79.90 set to hold, price action will remain on the upside for todays session.