Oil prices soar as Iraq indicates possible OPEC deal extension


Oil prices have witnessed sharp rise after Iraq indicated that OPEC is considering an extension of the supply cut deal to eliminate the global oversupply.  

Brent crude futures climbed 22 cents to $55.37 a barrel, while US West Texas Intermediate (WTI) crude futures gained 33 cents to reach $49.78, reported Reuters.

The news agency stated, Iraq Oil Minister Jabar al-Luaibi saying in an energy conference in the UAE that OPEC and other participating countries in the deal are planning to extend the oil curb beyond March next year, when the agreement is scheduled to end. 

He said some participants want a three or four months extension, while some think the deal needs to be extended until the end of next year.

"OPEC and other participating countries in the deal are planning to extend the oil curb beyond March next year, when the agreement is scheduled to end. "

OPEC and other producers opted to decrease production by 1.8 million barrels a day in an attempt to rebalance the oil market and support prices. 

Oil prices also gained support from the latest data released by industry group the American Petroleum Institute that stated a rise of 1.4 million barrels in US crude stocks to 470.3 million against a higher expectation of 3.5 million barrels improvement.

The report also highlighted a fall in gasoline and distillate stocks in the country.