Oil rises to $ 62, near 2015 high as Mideast risks support

Wednesday, 18 February 2015 00:00 - - {{hitsCtrl.values.hits}}

LONDON (Reuters): Oil rose to $62 a barrel on Tuesday, close to its 2015 high, supported by threats to Middle East supplies and expectations lower prices may prompt a slowdown in US output. Egypt on Monday bombed

Islamic State targets in Libya, where violence has reined in most oil output, and Iraq’s semi-autonomous Kurdistan Regional Government threatened to withhold oil exports if Baghdad failed to send its share of the budget. “The oil price is finding additional support from renewed greater perception of the risks to supply,” said Carsten Fritsch, analyst at Commerzbank. “In the short term, the momentum suggests that prices will climb further.” Brent crude rose 60 cents to $62.00 a barrel by 1101 GMT. It reached a 2015 high of $62.57 on Monday. US crude was 43 cents higher at $53.21 a barrel. Oil prices collapsed in the second half of 2014 on oversupply. The Organization of the Petroleum Exporting Countries refused to cut its output, choosing to defend market share against US shale oil and other competing sources. Brent has jumped by almost 40% in the last four weeks, supported by a sharp fall in US oil drilling. It had reached $45.19 on Jan. 13, the lowest in almost six years, down from $115 in June. The threat to Iraq’s northern exports from the revenue dispute arises as bad weather has cut Iraq’s southern shipments this month.