Brent crude floated above $105 a barrel on Monday, dropping from a one-week high hit on Friday, as US intervention in Iraq eased concerns over the risk of disruption to supply from Opec’s second-largest producer, Reuters reported. Analysts have said that U.S. air strikes on Islamic State targets in northern Iraq over the weekend could help enforce stability in Iraq, curbing the risk of supply disruptions. Iraqi Kurdistan said on Friday that its oil output remained unaffected. September Brent crude had edged up 3 cents to $105.05 a barrel by 0329 GMT. The contract jumped more than $1 to hit a weekly high of $106.85 on Friday before settling 42 cents lower. U.S. crude gained 21 cents to $97.86 a barrel. “The way in which oil is behaving with respect to the Iraqi geopolitical tensions is really the balance between potential short-term supply disruptions, which so far have been non-existent, versus the long-term supply growth prospects,” said Mark Keenan, head of commodities research Asia at Societe Generale.
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