Oil Price Rises Towards $59 | The Precision

Oil prices rose on Wednesday, lifted by a fall in U.S. crude
inventories and concerns that tensions in the Middle East could disrupt
supplies.

Brent crude futures, the international benchmark for oil prices, were
at 58.27 dollars at 0131 GMT, up 39 cents, or 0.7 per cent from their
last close – and a third above mid-year levels.

U.S. West Texas Intermediate (WTI) crude futures were at 52.08
dollars per barrel, up 20 cents, or 0.4 per cent and almost a quarter
above mid-June levels.

Traders said that prices were pushed up by a drop in U.S. crude
inventories as well as concerns that fighting in Iraq and mounting
tensions between the United States and Iran could affect supplies.

U.S. crude inventories fell by 7.1 million barrels in the week to
Oct. 13 to 461.4 million barrels, the American Petroleum Institute (API)
said late on Tuesday.

Official U.S. fuel inventory data is due to be published later on Wednesday by the Energy Information Administration.

Adding to a tightening U.S. market, tensions in the Middle East meant that a risk premium was being priced into oil markets.

Iraqi government forces captured the major Kurdish-held oil city of
Kirkuk earlier this week, responding to a Kurdish independence
referendum, and there are concerns that fighting could disrupt supplies.

The Iraq crisis adds to a looming dispute between the United States and Iran.

Last Friday U.S. President Donald Trump last week refused to certify
Iran’s compliance over a nuclear deal, leaving Congress 60 days to
decide further action against Tehran.

During the previous round of sanctions against Iran, some 1 million bpd of oil was cut from global markets. 

Reuters/NAN