Gulf Keystone bounces back

Gulf Keystone Petroleum has pulled back some of the losses it incurred because of the violence in Iraq.

An oil pump
Source: Bloomberg

Gulf Keystone Petroleum is trading at 82.25p, up 2.8% on the day as bargain hunting sets in, however the stock is still down 11% for the week.

Like Genel Energy, the oil exploration company has operations in northern Iraq where militants have seized control of a number of towns. Gulf Keystone has stated that oil production is still on track despite the violence, after traders feared the worst when trouble broke out a number of days ago.

The shares price had been in decline even before the recent trouble erupted, and continued violence could see it fall below 74p. However, if the violence abates, the stock could target highs of 92p.

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