Tensions in Iraq prompted a spike in the oil price last month, but UK equity managers are torn over whether ‘supermajors' BP and Shell are the best way to play rising prices.
A volatile situation erupted in Iraq in June as the militant group ISIS took over major cities, forcing the country to declare a state of emergency. Notably, the group attacked Iraq’s major oil refinery in Baiji, which provides almost a quarter of the refining capacity of the world’s seventh-largest oil producer. As a result, the price of Brent crude oil spiked to $115 per barrel, a nine-month high and an increase of 5% since ISIS declared parts of Iraq a new Islamic state. The oil price has since dropped back to $110, but the Iraq tension is the latest in a series of issues for ...
To continue reading this article...
Join Investment Week for free
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes