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Iraqi insurgency: Emergency aid and oil market concern

Denmark pledges 20 million kroner in humanitarian aid; meanwhile analysts fear oil disruption


According to the Foreign Ministry, over a million people have been displaced by the unrest (Photo: Scanpix)

June 12, 2014
15:07

by Philip Tees


The Islamic State of Iraq and Syria (ISIS) group’s takeover of key Iraqi cities is causing acute humanitarian concern and producing uncertainty in the international oil market.

Emergency aid
The trade and development minister, Mogens Jensen, described the scale of the situation. “The militant Islamists’ brutal actions are extremely frightening and unseen in Iraq in the past 25 years,” he said.

 “We must react quickly to the need for emergency aid. In a very short period of time, a million people have taken flight in their own country,” he continued in a press release published today.

“I have therefore decided to provide 20 million kroner in an extraordinary grant, so the UN can quickly establish relief centres and camps for the displaced and administer acute food aid to families in need.”

Oil market responds
Meanwhile Børsen business newspaper reports that escalating security concerns in Iraq threatens to impact on oil production, potentially pushing up prices.

One of the occupied cities, Kirkurk, lies on an important pipeline running to the Mediterranean Sea, and this is particularly causing analysts to question the security of oil production from the country, which is the second biggest producer of the Organization of the Petroleum Exporting Countries (OPEC).

Richard Mallinson, an analyst at the London-based Energy Aspects consultancy, told the Financial Times that the integrity of the pipeline was of great significance. “The continued disruption of the Kirkuk-Ceyhan pipeline and the wider effects will moderate Iraqi output growth in 2014 and potentially in future years as well,” he said.

Børsen writes that the price of Brent crude cost $110.27 per barrel this morning compared to $108.83 at the beginning of the month.



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Latest Comments

Thoughtful piece

(David Williams on September 21, 2014 22:59)

You know we came through the sea and desert .is this because we like to put...

(Meron Mehari on September 21, 2014 18:06)

Beyond temperature, Denmark's soil and flat topography also do not favor...

(Bill Jones on September 21, 2014 16:03)

Turning Denmark into a shit hole, 600 refugees at a time. Nice going.

(Alex DeGre?t on September 21, 2014 14:11)

Are you a Christian? have you ever read your own Bible? "Paulus, Paulus,...

(Abdul Karim Munir Aszari on September 21, 2014 10:58)

Toto, I don't think we're not in Kongsby anymore.

(Bill Jones on September 21, 2014 02:08)

And all accidences I said it might hapen there have been happened since I...

(Sly A-k on September 19, 2014 18:07)

Don't forget to leave room for a mosque, eh. ; )

(Alex DeGre?t on September 18, 2014 22:31)

Close the f-ing doors already. Denmark doesn't need anymore welfare sucking...

(Alex DeGre?t on September 18, 2014 16:19)

Lel

(Chris Brooks on September 18, 2014 15:43)