Oil rose further above $65 a barrel on Thursday, gaining for a second day, supported by expectations that a global supply glut is starting to ease and by fighting in Iraq. The U.S. government’s supply report on Wednesday showed crude inventories declined for a third week. Stockpiles had been at record levels due to excess supply, raising concern that storage capacity was getting tight. [EIA/S] Brent crude LCOc1 was up 23 cents at $65.26 as of 0828 GMT, after earlier falling as low as $64.83. U.S. crude CLc1 was up 22 cents at $59.20. “Brent is getting a bit of impetus from the threat Islamic State is posing in Iraq,” said Christopher Bellew, senior broker at Jefferies Bache. “I can see prices moving up further from here on geopolitics towards $70.” In Iraq, the city of Ramadi fell to Islamic State on Sunday in the most significant setback […]