Crude oil prices have touched $105 per barrel at the end of last week. This price increase occurred after a period of unusually low oil prices in the world market. During the last 2 months, oil prices had declined by over $10 due to excess supply and increased production.
The ongoing crisis in Iraq and the advance of the Islamic state of Iraq and the Levant have caused the oil prices to surge. While specialists argue that Iraq’s northern oil fields cannot be considered as a reliable source of production, they do agree that as long as southern fields continue to be intact and quite safe, no cause of fear or concern will affect the oil market.