Oil prices touch 26-month high over Turkey’s warn to cut crude supplies
The international benchmark of oil prices Brent crude has increased to a 26-month peak after Turkey threatened to cut supplies from the Kurdistan region in Iraq to the outside world.
London Brent crude for November delivery LCOc1 gained 1% to touch $59.03 a barrel, while the US crude for November delivery CLc1 slipped 10 cents and traded at $52.12 per barrel, reported Reuters.
Turkish President Tayyip Erdogan warned to stop supplies from the pipeline that delivers oil from northern Iraq to oppose the independence referendum of the Kurdish autonomous region.
The oil pipeline delivers between 500,000 and 600,000 barrels per day (bpd) to Ceyhan Port in Turkey.
Mitsubishi UFJ research and consulting senior economist Tomomichi Akuta was quoted by the news agency as saying: “The high compliance of producers in jointly curbing output, as well as the news of Turkey’s response to the referendum helped oil prices.”
In the last week, Brent has witnessed sharp gains after the joint committee of the Organization of Petroleum Exporting Countries (OPEC) members and non-OPEC producers stated that oil inventories are declining and the crude market is gradually rebalancing.
OPEC and some key producers such as Russia have agreed to reduce production by 1.8 million barrels a day by next March.
However, some market analysts addressed their concern about growing oil output from the US.
The US Energy Information Administration said that shale production is expected to rise for the tenth consecutive month in October.