Earlier this week, Iraqi forces attempted to take control of the city of Kirkuk. The conflict between the two sides exists due to Kirkuk’s vote for independence, which caused backlash throughout Baghdad. As the issues move beyond politics, oil control may be at the center of the ongoing battle. Kirkuk is currently home to more than 10% of Iraq’s oil supply. Financial experts are merely left to wonder if the dispute between the territories will affect oil prices for a long period of time.
Oil Prices Increase Quickly
Since Iraq’s push deep into Kirkuk, WTI crude oil prices jumped nearly 2%. The overnight price of $52.30 demonstrates just how impactful this overseas political turmoil could really be. The affect will soon spread across the globe. Kurdish-controlled areas are some of the most oil-rich areas in the world. This is good news for some forex investors considering the WTI just hit a three-week high.
Over in America, the oil prices have lifted the three main equity indices toward record-highs. In New York, prices rose nearly 2% to $58, topping its highest level in nearly a month. Both the Nasdaq and Dow Jones Industrial Average showed gains of at least .3%. Energy companies throughout the country had monumental days, closing at .2% higher. Japan’s yen and the Euro weakened yesterday, but investors expect them both to bounce back quickly.
Forex Markets Roundup
The biggest piece of news to emerge from Monday’s market dealt with the performance of the U.S. dollar. The dollar nearly hit a one-week high against its Canadian counterpart, as the currency continues to gain momentum. America’s dollar was helped a lot by a huge month in business production and manufacturing. Prices for imports and exports keep rising as well. Final daily reports show the dollar rose .21% on Monday. Investors are hopeful the U.S. dollar continues to inflate.