Mubasher: Oil prices rose by the end of Monday’s trade, supported by the positive sentiment regarding extending the output cut agreement in the next Organization of the Petroleum Exporting Countries (OPEC) meeting in Vienna.
It was reported today that oil supplies from northern Iraq stopped, days after the Iraqi government regained control over the disputed area, which increased concerns regarding inflows from the second largest OPEC crude producer.
On Satuday, the National Iraqi News Agency (NINA) reported that Iraqi North Oil Company (NOC) and the Kurdish KAR Group are working to resume operations in the Avana and Bai Hassan oil fields in Kirkuk, which was halted due to the Iraqi military operations to restore the region from Kurdish fighters.
Nymex futures rose by 0.5% to the level of $54.15 per barrel, its highest close in eight months.
Meanwhile, Brent crude futures went up 0.8% to $60.90 per barrel, maintaining its highest level in two years.
Brent crude oil recently saw huge gains, and has been maintaining its level above $60 per barrel, surging by around 36% compared to the low prices recorded in June, especially after compliance with the agreed production cuts reached 120% in September.
It is worth noting that many members of the Organization of the Petroleum Exporting Countries (OPEC), and other major non-OPEC producers voiced their support of prolonging the output curb by around 1.8 million barrels per day, which was approved in January and is set to expire March 2018.
An OPEC summit will be held in Vienna on 30 November to decide on the output policy, and OPEC officials have said the supply-cutting pact is likely to be extended beyond March.
OPEC secretary general Mohammad Barkindo said that Saudi and Russian backing for an extension cleared the fog before the meeting in Vienna.
The UAE minister of energy, Suhail Al Mazroui said on Monday that oil markets need an extension of the OPEC production cut agreement after March 2018.
