Oil surged to the biggest gain in six weeks before paring some of those gains after Iraq’s state marketing company said exports haven’t been affected by violent clashes in Baghdad, according to Bloomberg.
The clashes in Iraq, and the subsequent surge in price, is the latest example of a sensitive market with tight supply reacting to global events.
As Bloomberg notes, Oil has received a push after Saudi Arabia warned that it was possible that OPEC+, which convene Sept. 5, “would reduce production as futures prices didn’t reflect fundamentals. Other members of the alliance signaled their support. Separately, Goldman Sachs Group Inc. struck a bullish note, urging investors in a note Monday to ‘buy commodities now, worry about the recession later.’”
