SINGAPORE: Brent crude rose to a near nine-month high above $113 per barrel on Monday as Sunni insurgents advanced in Iraq, intensifying concerns over a potential disruption to oil exports from the second-largest OPEC producer.
The sudden eruption of violence in Iraq led to a sharp spike in prices last week, with both Brent and US crude gaining over 4 percent - the most since July and December respectively.
Prices rose more modestly on Friday as the market waited to see if the conflict would threaten oil refineries south of Baghdad.
"It looks like the country is headed to civil war, which will mean a higher risk premium built into oil prices," said Tony Nunan, oil risk manager at Mitsubishi Corp in Tokyo.
"This may not mean a stop to Iraqi exports immediately, but it probably will affect Iraq's ability to increase its production rate," he said.
Brent crude for August delivery rose 61 cents to $113.07 a barrel by 0719 GMT.
The July contract, which expired on Friday, settled 39 cents higher at $113.41 per barrel, the highest since Sept. 9. US oil climbed 37 cents to $107.28 per barrel.
On Friday, it rose as high as $107.68 before settling up 38 cents at $106.91 per barrel, the highest level since Sept. 18.
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