Global crude futures reached news highs Tuesday for the third consecutive day as attention focused on political developments in Turkey and market participants adjusted positions in response, sources said.
This move [in crude] is on news from Turkey, as well as short covering," said a London-based broker. "Some players expected the market to come off after the recent highs, so have to adjust today. WTI is also much stronger than Brent, primarily because that is where the speculative money is."
"We all have an interest in a stable Iraq and a desire to see the PKK brought to justice," Whitehouse spokesman Gordon Johndroe said. "But we urge the Turks to continue their discussions with us and the Iraqis, and to show restraint from any potentially destabilizing actions."
On Monday the Turkish government formally asked their parliament for permission to launch attacks into northern Iraq against the Kurdistan Workers' Party (PKK). Approval for such a motion is expected to pass on Wednesday. This would enable the Turkish government to decide over the next year how to proceed, according to news agencies.
Updated: October 16, 2007
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