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Oil prices strengthen as traders eye supply issues

Last updated: 11:35 09 Oct 2012 EDT, First published: 15:35 09 Oct 2012 EDT

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Strengthening after two down-days oil prices were up almost a dollar this afternoon.

In London Brent crude futures were trading around the US$112.80 mark, while US light sweet crude futures were changing hands at US$90.12 a barrel.

This comes amid hopes of Chinese stimulus, which would boost international oil demand, as well as continued reports of escalating conflict between Turkey and Syria as the former’s president talks of ‘worst case scenarios’.

The fear is that a spreading of violence and political disruption would choke supplies out the key oil producing region.

That said, this week has already seen reports of improved oil exports out of Iran - itself a focus of geopolitical tension due to the disputes surrounding its nuclear ambitions.

Also, today, multi-national organisation The International Energy Agency said it forecasts that Iraq’s oil exports would more than double in the next eight years.

Elsewhere Saudi Arabia says it is satisfied that current oil prices won’t hamper global growth as its output reached 10 mln barrels a day, which is a 30-year high. And the International Monetary Fund said that a strong rebound in Libya will see accelerated economic growth across the oil exporting countries of the Middle East and Northern Africa (MENA).

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