IRAQ - Oil Markets Are Boiling.

An incursion could stifle E&P investment, especially in the KRG area, and put at risk Turkey's position as a vital transit route for the world's crude oil supply. Institutional investors are looking for almost any event to emphasise with people who may not be as familiar with Middle East politics as they ought to be to help push up the price of WTI, as world oil markets are boiling because of tensions in this region. December WTI on Oct. 26 rose above $92/b (see omt18SudanOct29-07).

The PKK has threatened to attack crude oil pipelines bound for the Ceyhan terminal from Azerbaijan and northern Iraq. The BTC pipeline from Baku is to pump 1.2m b/d in 2008 and this will become a critical lifeline for south-eastern Turkey.