* U.S. President Obama approves limited air strikes on Iraq
* U.S. air strikes may threat Iraqi oil supplies
* Obama says no intention of getting into war in Iraq
By Jacob Gronholt-Pedersen
SINGAPORE, Aug 8 Oil prices on both sides of the
Atlantic rose more than $1 on Friday, with Brent nearing $107 a
barrel after the United States approved air strikes against
Islamic militants in Iraq, raising the threat of oil disruptions
from the key oil producer.
President Barack Obama said he had authorized limited use of
American air power on advancing Islamic militants in northern
Iraq to protect American personnel, but had no intention of
getting dragged into war there.
"Gains may extend further when London opens, but after a
round of short covering, I think we will see some profit taking
in the market," said Ken Hasegawa, a commodity sales manager at
"The market is very thin, so such sudden news can result in
significant price moves, not only in oil but also in stock and
currency markets," said Hasegawa.
Brent crude for September delivery rose $1.19 cents
to $106.63 a barrel by 0328 GMT, after trading as high as
$106.85 a barrel earlier in the session. The contract was on
track for gains of nearly 2 percent for the week.
U.S. crude rose 90 cents to $98.24 a barrel, after
trading as high as $98.45 a barrel.
The spread CL-LCO1=R between the two benchmarks widened to
$8.39 a barrel.
Islamist militants surged across northern Iraq toward the
capital of the Kurdish region on Thursday, sending tens of
thousands of Christians fleeing for their lives.
The air strikes would be the first carried out by the U.S.
military in Iraq since the withdrawal of its forces at the end
of 2011, but Obama insisted he would not commit any ground
forces and had no intention of letting the United States get
dragged back into a war there.
Brent spiked above $115 in mid-June on fears that violence
in Iraq would disrupt oil supplies from the OPEC member.
But prices fell back more than $10 over the past six weeks
as it became clear that Iraqi oil continued to flow steadily
from southern fields, and as investors shifted attention to what
appeared to be an oversupplied global oil market.
(Reporting By Jacob Gronholt-Pedersen; Editing by Tom Hogue)