2017.10.1702:37:00UTC+00Oil Remain Elevated as Iraq Tensions Heat Up

Oil prices stayed close to this month's high after Iraqi forces took control of Kirkuk city from the mostly autonomous Kurdish troops.

U.S. crude futures traded at $51.78 per barrel, marginally down on the day, after reaching a record high of $52.37 on Monday, denoting a 6.7 percent increase from its three-week low of $49.10 reached on October 6.

Meanwhile, Brent crude futures exchanged at $58.84 per barrel, unchanged on the day after rising to as high as $58.47 on Monday.

Oil prices remained near their highest levels in almost three weeks after Iraqi government forces occupied the major Kurdish oil city of Kirkuk, a reaction to a controversial Kurdish independence referendum, increasing worries about oil supply disruptions.

As Iraqi forces push on to retake the area, Kurdish operators temporarily closed some 350, 000 bpd of oil output at two large Kirkuk fields, citing security concerns, according to oil ministry sources on both parties.

While production resumed shortly after the advance, worries about future supply problems and further tensions in the confrontation between Baghdad and the Kurds kept investigators on edge.