Crude Oil Ends Above $107 On Iraq Worries

(RTTNews) - U.S. crude oil ended higher for a second straight session on Friday, with the situation in Iraq continuing to deteriorate amid concerns over disruption in oil supplies.

Investors continued to keep a close watch on the developments in Iraq where militants are reportedly engaged in fierce fighting for the Beiji oil refinery and Tal Afar airport.

Meanwhile, President Barack Obama has decided to deploy US military personnel to advise the Iraqi security forces, while making it clear that Iraq's problems cannot be resolved through American action or through military force alone.

Light Sweet Crude Oil futures for July delivery, the most actively traded contract, gained $0.83 or 0.8 percent to close at $107.30 a barrel on the New York Mercantile Exchange Friday.

Crude prices for July delivery scaled a high of $107.73 a barrel intraday and a low of $106.33.

On Thursday, crude futures ended higher over situation in Iraq with increasing concerns over disruption in oil supplies after al Qaeda-backed Sunni Muslims reportedly raised their flag over the nation's largest oil refinery.

As well, Exxon Mobil Corp. and BP Plc carried out a "major evacuation" of employees from Iraq, OPEC's second-largest oil producer, after insurgents seized cities north of Baghdad.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 80.41 on Friday, up from its previous close of 80.32 late Thursday in North American trade. The dollar scaled a high of 80.49 intraday and a low of 80.20.

The euro traded lower against the dollar at $1.3587 on Friday, as compared to its previous close of $1.3607 late Thursday in North American trade. The euro scaled a high of $1.3633 intraday and a low of $1.3566.

In economic news, the U.K. budget deficit widened more-than-expected in May as income receipts remained weak, signs the robust economic recovery failed to support public finance. Excluding the temporary effects of financial interventions, public sector net borrowing increased to GBP 13.3 billion from GBP 12.6 billion last year, the Office for National Statistics said Friday. The deficit was forecast to fall to GBP 8.7 billion.

Germany's leading index rose slightly in April, after holding steady in the previous month, a survey by the Conference Board showed Friday. The Conference Board leading economic index rose 0.2 percent monthly in April. The March outcome was revised to flat from the originally reported 0.3 percent rise.