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World oil markets can deal with situation in Iraq: U.S.' Lew

WASHINGTON (Reuters) - U.S. Treasury Secretary Jack Lew said on Tuesday there was ample oil production capacity to offset any supply disruptions that may occur due to the violence in Iraq.

"I believe that world energy markets will be able to deal with the situation as it goes forward," Lew said at an event sponsored by the U.S.-China Business Council.

"I don't think it's in the interest of any of the parties in Iraq for there to be a severe disruption in supply," he added. "There is sufficient capacity in the world right now to deal with whatever we need to deal with."

(Reporting by Jason Lange and Elvina Nawaguna; Writing by Tim Ahmann)

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