New York — Oil prices gave up earlier gains and turned negative on Tuesday as expectations of high US production and exports offset concerns that fighting between Iraqi and Kurdish forces could threaten the country’s crude output. Brent crude futures were down 60c, or 1%, at $57.22 a barrel by 3.44pm GMT. US crude was down 59c, or 1.1%, at $51.28 per barrel. Earlier, both contracts were up by nearly 1%. The Baghdad government recaptured territory across northern Iraq from Kurds on Tuesday, widening a campaign that has shifted the balance of power in the country. The fighting in one of Iraq’s main oil-producing areas helped restore a risk premium on oil prices, though officials said that oil fields in the region were operating normally. "The security premium built into prices from the [Iraqi-Kurdish] situation is in the process of vanishing," said John Kilduff, partner at Again Capital in New York. "Everyone is looking to see if the high level of [US] crude oil exports will pull down...
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