Brent Hits $58

Oil prices firmed on Tuesday, building on gains made as fighting between Iraqi and Kurdish forces threatened supplies from northern Iraq while tension rose between the United States and Iran. After months of range-bound trading, during which OPEC-led supply cuts supported crude but rising US output capped markets, prices have made significant gains this month, CNBC reported. Brent crude advanced by 20 cents to $58.02 a barrel, up by about a third from its mid-year levels. US light crude was up 20 cents at $52.07. The Baghdad government recaptured territory across northern Iraq from Kurds on Tuesday, widening a campaign that has shifted the balance of power in the country. The fighting in one of Iraq’s main oil-producing areas helped to restore a risk premium on oil prices, though officials said oilfields in the region were operating normally. Goldman Sachs said the Kirkuk cluster of oilfields, which pump about 500,000 barrels per day and extend from the autonomous Kurdistan region into northern Iraq, were at risk from the conflict.