Oil prices have remained stable, continuing with previous gains made due to the ongoing conflict between Iraqi and Kurdish forces that can cut off crude supplies from northern Iraq, as well as the continued political tension between the US and Iran.
Brent crude oil LCOc1 gained 5 cents to touch $57.87 a barrel, while the US West Texas Intermediate (WTI) crude CLc1 remained unchanged at $51.87, reported Reuters.
Iraqi Government forces previously captured the city of Kirkuk from Kurdish forces. The conflict can significantly impact crude supplies from the region, which host major oilfields.
The ongoing political friction between the US and Iran also increased the global risk for oil.
US President Donald Trump refused to confirm Iran’s compliance over a nuclear deal that has left Congress 60 days to consider implementing new sanctions against the country.
Approximately one million barrels per day (bpd) of oil were cut from the international market during the previous round of sanctions against Iran.
Along with these political developments, oil prices are also supported from the ongoing supply cuts to OPEC.
The rate of compliance between OPEC and other participating countries was about 86%, reported Birol.
OPEC and other key producers decided to curb oil output by 1.8 million bpd from January this year to March next year.
Various analysts are also revising the oil price predictions as the global crude market continues to tighten.
Image: OPEC headquarters in Vienna. Photo: courtesy of DALIBRI via Wikipedia.