Brent Oil Erases Iraqi Rally in London as Futures Retreat
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Brent crude fell below $110 a barrel, reversing a rally that started when Islamist militants seized the northern Iraqi city of Mosul almost a month ago. West Texas Intermediate also traded near a one-month low.
Brent futures lost as much as 0.7 percent in London. While the Islamic State, a splinter group of al-Qaeda, has taken control of provinces in northwestern Iraq, the country’s oil exports are unaffected. The insurgency hasn’t spread to Iraq’s south, the source of more than three-quarters of its oil output. The nation’s semi-autonomous Kurds have said they will continue to guard Kirkuk, home to the nation’s fourth-largest oilfield.