GERMANY: Germany's DAX index starts into the new week with modest losses as one commodities researcher warns of the "huge impact" on the oil price if Iraq's production is even only slightly reduced because of the current violence there

Record ID: 344552

  • Title: GERMANY: Germany's DAX index starts into the new week with modest losses as one commodities researcher warns of the "huge impact" on the oil price if Iraq's production is even only slightly reduced because of the current violence there
  • Date: 16th June 2014
  • Summary: FRANKFURT, GERMANY (JUNE 16, 2014) (REUTERS) FLOOR AT FRANKFURT STOCK EXCHANGE DECORATED WITH GERMAN FLAGS AHEAD OF GERMANY'S FIRST 2014 WORLD CUP GAME AGAINST PORTUGAL LATER ON MONDAY GARDEN GNOME IN GERMAN COLOURS ON DISPLAY BANK SHARES ON ELECTRONIC BOARD HIGH SHOT OF FLOOR TRADER WORKING ON COMPUTER, GERMAN FLAGS IN FOREGROUND DAX CURVE ON BOARD WIDE OF DAX BOARD VARIOUS OF TRADER IN GERMANY SHIRT WORKING ON COMPUTER (SOUNDBITE) (German) HEAD OF CAPITAL MARKET ANALYSIS AT BAADER BANK, ROBERT HALVER, SAYING: "Rising oil prices are bad for the world economy. It's like with interest rate rises but my hope is that if there is an alliance between the United States and Iran, even if it's secret, the problem will soon be off the table." TRADER (SOUNDBITE) (German) HEAD OF CAPITAL MARKET ANALYSIS AT BAADER BANK, ROBERT HALVER, SAYING:"We have to stand together -- the European Union -- and say 'dear Russians, we need your gas which gets you an advantage too. So, put the conflict aside.' Otherwise, we have a new, huge conflict potential which nobody needs and which would be negative for the markets." WIDE OF DAX BOARD HIGH SHOT OF FLOOR VARIOUS EXTERIORS OF COMMERZBANK BRANCH EUGEN WEINBERG, HEAD OF COMMERZBANK'S COMMODITY RESEARCH, WALKING PAST BANK EMPLOYEES WORKING ON COMPUTERS (SOUNDBITE) (German) HEAD OF COMMERZBANK'S COMMODITY RESEARCH, EUGEN WEINBERG, SAYING: "Iraq is one of the world's most important oil exporters and producers. It is now number two within OPEC behind Iran. A possible loss of this production or even a small reduction of Iraq's production will have a huge impact on the oil price. We already have several other conflicts. The situation in Libya has not been solved for months and as a consequence, the market looses out on 1.5 million barrels. The sanctions against Iran mean that almost half a million barrels daily are missing from the production." WIDE OF BANK EMPLOYEES WORKING ON COMPUTERS
  • Embargoed: 1st July 2014 13:00
  • Keywords:
  • Location: Germany
  • Country: Germany
  • Topics: Economy,Energy
  • Reuters ID: LVABQ3DZLQI1FAAC4EWL1D5HH1QW
  • Story Text: Germany's DAX index opened suffered moderate losses in early trading on Monday (June 16) as one trader said rising oil prices would have negative consequences on the world economy.
    Brent crude rose towards $113 a barrel on Monday after a strong rally last week, as Sunni insurgents advanced in Iraq, intensifying concerns over a potential disruption to oil exports from the second-largest OPEC producer.

    "My hope is that if there is an alliance between the United States and Iran, even if it's secret, the problem will soon be off the table," said Frankfurt trader Robert Halver, head of capital market analysis at Baader bank.
    The eruption of violence in Iraq led to a spike in prices last week, with both Brent and U.S. crude gaining more than 4 percent - the most since July and December, respectively.
    Prices rose more modestly on Friday as the market waited to see if the conflict would threaten oil refineries south of Baghdad.
    In Frankfurt, the head of Commerzbank's commodity research, Eugen Weinberg, said Iraq was "one of the world's most important oil exporters and producers."

    "A possible loss of this production or even a small reduction of Iraq's production will have a huge impact on the oil price," Weinberg predicted.
    For the moment, the immediate threat to Iraq's oil supplies - most of which are hundreds of miles south of the fighting - remains limited, analysts and consultants say.
    At 1:30 p.m. 91130 GMT), the DAX was down 25 points or 0.25 percent at 9,888 points.
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