Oil prices rise as geopolitical tension escalates

Oil prices jumped as escalating turmoil in the Middle East raised concerns over exports in the market.

The Iraqi security forces on Monday fully recaptured the city of Kirkuk and took control of the government building after the Kurdish forces withdrew from the city, Xinhua quoted a local security source as saying.

US President Donald Trump announced earlier on Friday that he had decided to decertify Iran's compliance with the landmark deal reached in 2015.

"I am announcing today that we cannot and will not make this certification," Trump said at the White House as he unveiled a new Iran strategy of his administration.

Analysts said the unrest in the Middle East and possible US action on the Iran nuclear deal boosted the oil prices, as the traders feared geopolitical tensions could cut off oil exports from the region.

On the data front, the number of rigs operating in the US oil fields fell by 5 to a total of 743 rigs last week, oilfield service firm Baker Hughes said in its weekly report on Friday.

The West Texas Intermediate for November delivery increased 0.42 USD to settle at 51.87 dollars a barrel on the New York Mercantile Exchange, while Brent crude for December delivery rose 0.65 dollar to close at 57.82 dollars a barrel on the London ICE Futures Exchange.

--IANS

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