Crude Oil Prices Rise as Iraq Halts Exports

OPEC oil ministers tried to reassure nervous energy markets that the producers’ cartel would make up for any shortage of crude after Iraq halted most of its oil exports.

Crude prices shot higher initially on the Iraqi announcement, but then lost those gains as it became apparent that OPEC members will not allow a shortfall to occur.

“We’re going to make sure that demand is met.” OPEC President Chakib Khelil said in Vienna, where the group’s representatives were to meet today to set future targets for output. Khelil gave no details of how the Organization of Petroleum Exporting Countries planned to replace the missing Iraqi crude.

On the New York Mercantile Exchange, contracts for light sweet crude for July delivery peaked at $28.74 in early trading before closing at $28.13, up 20 cents.