US oil price rises as Iraq tension escalates

U.S. oil price gained Friday as President Barack Obama announced Thursday that U.S. will send 300 military advisers to Iraq in the wake of escalating violence in the second largest crude producer of the Organization of the Petroleum Exporting Countries.
Militants of the Middle East country continued fierce clashes with Iraqi security forces in several provinces of the country.
Reports said government troops fought back a major attack by militants against the oil refinery of Baiji, located 200 kilometers north of the capital Baghdad.
Iraq is the second biggest oil exporter in the OPEC after Saudi Arabia, exporting about 2.5 million barrels a day, according to the Energy Information Administration.
U.S. crude price was also supported by the U.S. loose monetary policy. The Fed reiterated Wednesday that it is appropriate to keep its benchmark short-term interest rates near zero "for a considerable time" after the bond purchase program ends.
Brent price eased as Ukraine announced a week-long unilateral cease-fire in eastern regions bordering Russia.
Light, sweet crude for July delivery moved up 83 cents to settle at 107.26 U.S. dollars a barrel on the New York Mercantile Exchange, while Brent crude for August delivery lost 25 cents to close at 114.81 dollars a barrel.