Oil prices rise over unexpected fall in US crude stocks
Oil prices have increased while international benchmark Brent continues to trade at 26-month high levels following reports of an unexpected fall in US crude stocks.
Brent crude for November delivery climbed 29 cents to $58.73 a barrel, while the US crude for November delivery soared 34 cents to touch $52.22, reported Reuters.
Industry group American Petroleum Institute (API) has reported that the crude stocks in the country decreased by 761,000 barrels last week due to rising production at refineries.
The distillate stocks also fell, while gasoline inventories rose.
Earlier, crude prices increased over concerns of tighter market after Turkish President Tayyip Erdogan threatened to cut off the pipeline from northern Iraq to the Ceyhan port to oppose the independence referendum in Iraqi Kurdistan.
The pipeline transports 500,000bpd-600,000bpd of crude.
Oil prices have also received support due to the effort of the Organization of Petroleum Exporting Countries (OPEC) and other producers to reduce output by 1.8 million barrels a day, which is gradually rebalancing the market.
According to the energy regulator of Texas, crude oil production from the US state dropped by 1% in July compared with production from a year ago.