Because there is no oversupply. Global oil inventories are at the lowest levels since 2008.
If it wasn't for increased production in the US, oil prices would be far higher as the rest of the world has had flat production since 2005 and demand is rising each year.
And these current 'geo political issues' have huge potential to disrupt oil supply. We have seen how instability in Libya and Syria has almost totally stopped production/exports in those countries. If something similar happens in Iraq it will be a huge deal. The oil markets are just now waking up to that fact.
Yes, here is an AP report on the insurgency...BAGHDAD (AP) — The al-Qaida-inspired group that led this week's charge in capturing two key Sunni-dominated cities in Iraq vowed Thursday to march on to Baghdad, raising fears about the #$%$-led government's ability to slow the assault following lightning gains.
Signs emerged that the Islamic State of Iraq and Levant is backed in its campaign by former military officers and other members of ousted dictator Saddam Hussein's regime — including a force led by Izzat Ibrahim al-Douri, the late leader's former deputy who escaped the 2003 U.S.-led invasion and eluded U.S. and Iraqi forces ever since.