Oil holds gains

Oil prices crept higher on Tuesday, holding on to gains made as fighting between Iraqi and Kurdish forces threatened supplies from northern Iraq while political tension rose between the United States and Iran.

After months of range-bound trading during which Opec-led supply cuts supported crude values but rising US output capped markets, prices have moved up significantly this month.

Brent crude oil was up 25 cents at $58.07 a barrel by 0845 GMT, up almost a third from its mid-year levels. US light, sweet crude was 25 cents higher at $52.12.

Iraqi government forces captured the Kurdish-held oil city of Kirkuk on Monday, responding to a Kurdish independence referendum. There were unconfirmed reports that Kurdish forces had shut around 350,000 barrels per day (bpd) of oil production from major fields.