In June, the price of Brent crude oil hit $115 a barrel, an eight-month high. But the spike didn’t last long. This week, oil was down at an eight-month low, below $104.
The Islamic State insurgency in Iraq had fuelled fears of major supply disruptions, but the jihadists’ stronghold is largely confined to the north of Iraq, and Iraqi exports come mostly from the south.
Meanwhile, the start of air strikes last week should weaken the Islamic State’s position, further reducing the odds of supply disruptions.
Elsewhere, reckons Barclays, any disruptions to Russian supplies due [...]