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Oil prices largely held on to last week’s gains on Monday, supported by supply disruptions in Iraq and a drop in U.S. drilling.
However, the reduction in drilling rigs in the United States could be temporary, analysts said, as activity had been restrained by hurricane threats.
The number of U.S. rigs drilling for new oil fell by seven to 736 in the week to Oct. 20, the lowest level since June, energy services firm Baker Hughes said on Friday. RIG-OL-USA-BHI
Global benchmark Brent crude was trading at $57.56 a barrel at 0957 GMT, down 19 cents.
U.S. West Texas Intermediate (WTI) crude was up 2 cents at $51.86.
“The market is in a tug of war between short-term bullish drivers which are very true, very visible and very strong versus real concerns for the oil market balance for 2018,” said Bjarne Schieldrop, chief commodities analyst at SEB Markets.
One bullish factor is supply disruptions in northern Iraq, where tensions have been running high since the Kurdistan region’s vote in favour of independence last month.
As of Sunday, oil exports from Iraq’s Kurdistan via the Turkish Mediterranean port of Ceyhan were still flowing at sharply reduced rates between 200,000 and 250,000 barrels per day, two shipping sources said. Flows had increased slightly to 255,000 bpd by Monday, one source said.
Typically, the pipeline transports around 600,000 bpd.
Iraqi Oil Minister Jabar al-Luaibi said on Saturday oil exports were increasing from the southern Basra region by 200,000 bpd to make up for a shortfall from the northern Kirkuk fields.
In a landmark visit to Iraq, Saudi Arabia’s Energy Minister Khalid al-Falih praised the two countries’ collaboration within the Organization of the Petroleum Exporting Countries to cut production in an effort to prop up prices.
Iraq said the two countries would continue to cooperate in implementing decisions by oil-exporting countries.
The remarks come just over a month ahead of the group’s next scheduled meeting, at which the oil exporters are expected to announce further decisions on their production-curbing deal.
“The market looks considerably different now than it did just a few months ago and signals coming from the organization itself and member countries continue to be constructive for prices,” analysts at JBC Energy wrote.
The crude oil volatility index, which measures market expectations for 30-day price volatility, fell to levels similar to those seen in 2014 last Friday.
The average price for Oman Crude Oil Future Contracts at the Dubai Mercantile Exchange (DME) witnessed a price drop by 0.7 per cent in August, compared with corresponding figures for July, according
Oman Daily Observer
Brent, the international benchmark for crude oil, could to rise above $85 (Dh312) per barrel in the coming months due to a combination of US sanctions on Iran and a potential Opec supply crunch, anal
Qatar has begun regular shipments of liquefied natural gas (LNG) to Bangladesh. An LNG cargo loaded over the weekend from Qatar’s RasGas production facility and will be the first of about three 140,0
Saudi Aramco has raised the European price for its Arab Light crude grade for October, the state oil producer said on Wednesday, as Russian Urals prices rally and European refiners seek to replace Ir
Brent crude prices jumped to near $80 per barrel on Tuesday after the evacuation of two Gulf of Mexico oil platforms in preparation for a hurricane. US light crude rose $1.31 a barrel from Friday’s c