Oil prices trading steady as Iran/Iraq tension eases

Oil prices are trading steady in Asia on Monday as tensions between the two oil giants, Iran and Iraq, relieved after the former withdrew from an oil well in East Maysan. Light oil price currently trading at $73.30 WTI crude for January delivery, to be expired today, has little change from last Friday.

Iranian troops crossed the Iraqi border last week and occupied around the oil well in the al-Fakah region. The new drove up crude oil price to as high as 74.69 last Friday as the conflict may lead to oil export disruption. However, earlier today, the 2 countries discussed about the issue and tried developing ‘bilateral ties and paving ground for strengthening cooperation’.

Iran and Iraq are the world’s second and third largest oil producers. Average productions in the first 9 months of 2009 were 4.26M bpd and 2.39M bpd respectively. The Iraqi government has been striving to re-develop the oil industry in the country and has been negotiating cooperation with international oil companies.

Tags:  Iran, Iraq, oil prices, trading