Oil prices higher as eyes on Iraq

Oil prices rose in Asia Monday as dealers monitor sustained US air strikes on extremist militants in Iraq who are threatening the crude-rich Kurdish region, analysts said. US benchmark West Texas Intermediate for September delivery rose 32 cents to $97.97 while Brent crude for September gained 23 cents to $105.25 in mid-morning trade. Iraq's Kurdish peshmerga on Sunday reclaimed two towns from Islamic State fighters, buoyed by three days of US air strikes to stem the jihadist advance. Iraq's oil ministry on July 24 said crude exports totalled 2.42 million barrels per day in June, falling far short of a budgeted projection of 3.4 million bpd. As the number-two producer in the OPEC cartel, Iraq's 11 per cent of proven world reserves plays a key role on world markets and prices after violence disrupted oil exports from Syria and Libya. The dip in exports adds to the woes of Iraq, which is heavily dependent on oil revenues while spending more on military equipment to battle the Islamic State group, according to AFP.