Oil retreats after Iraq calms supply nerves following clashes

Oil retreats after Iraq calms supply nerves following clashes

Oil declined after increasing by the most in six weeks after Iraq’s state marketing company said exports haven’t been affected by violent clashes in Baghdad.

West Texas Intermediate futures pared part of Monday’s price jump with some of the supply concerns from OPEC’s second-biggest producer easing. A tight market, exacerbated by a separate outbreak of violence in Libya, has countered worries over the global economy in recent days, and any disruption in Iraq would have driven prices much higher.

Oil has received a push after Saudi Arabia warned that it was possible the Organization of Petroleum Exporting Countries and its allies, which convene Sept. 5, would reduce production as futures prices didn’t reflect fundamentals. Other members of the alliance signaled their support. Separately, Goldman Sachs Group Inc. struck a bullish note, urging investors in a note Monday to “buy commodities now, worry about the recession later.

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But some of the risks over a further tightening of supply eased with Iraq’s comments. The country has the capacity to boost exports to all destinations and won’t refuse any requests for more oil, Alaa Al-Yassiri, the director general of SOMO, said in an