Nigeria may be heading for anther oil boom.

Oil prices are not just picking up, they are jumping.

On Monday, prices jumped to $57.85 per barrel.

This is however spurred by concerns over potential renewed U.S. sanctions against Iran as well as conflict in Iraq.

Iraqi forces on Sunday began moving towards oil fields and an important air base held by Kurdish forces near the oil-rich city of Kirkuk, Iraqi and Kurdish officials said.

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These two factors may impede global supplies thereby leading to unexpected price hike.

Meanwhile, an explosion at a U.S. oil rig and reduced exploration activity also supported prices there.

There were also concerns about the stability of Iraq, the second biggest oil producer within OPEC behind Saudi Arabia.

U.S. crude prices were also supported by drillers cutting back the number of rigs looking for new production.

Drillers cut five oil rigs in the week to October 13, bringing the total count up to 743, the lowest since early June, General Electric Co’s Baker Hughes energy services firm said late on Friday.

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