Oil prices rallying again on short-term drains on supply

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The global benchmark crude traded at a premium of $5.99 to WTI for December.

The Iraqi government also plans to increase oil production from the region to more than a million barrels per day, with a foreign oil company to be contracted to implement the plan, according to the minister. This is months after of range-bound trading during which OPEC-led supply cuts buoyed crude prices but rising US output capped markets.

Meanwhile, West Texas Intermediate crude rose by 19 cents to Dollars 52.07 while global benchmark Brent was up 37 cents at USD 58.25 a barrel.

USA crude inventories fell 5.7 million barrels last week, the Energy Information Administration said, exceeding analysts' expectations.

West Texas Intermediate crude for November delivery rose as much as 43 cents to $52.31/bbl on the New York Mercantile Exchange and was trading at $52.23 as of 1:55 p.m.in London.

In any case, Kirkuk is not in the territorial zone of the autonomous Kurdish area, whose leaders recently won a referendum on national independence from Iraq.

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"It remains to be seen whether the Kurds, after withdrawing from the region they claim to be entitled to, will allow crude oil to be transported by pipeline across their territory to the Turkish Mediterranean port of Ceyhan", said analysts at Commerzbank. There were unconfirmed reports that Kurdish forces had shut around 350,000 barrels per day (bpd) of oil production from major fields. President Donald Trump last week refused to certify Iran's compliance with a 2015 global agreement to curb the Islamic Republic's nuclear program in exchange for economic sanctions relief. "Collectively, OPEC countries lost more than $1 trillion".

If no other countries support the US push for more sanctions, Iran's production is unlikely to drop by 1 million bpd, according to Goldman. The group is managing the global glut of crude oil after noticing the prices halve and revenues dip sharply in the recent times. With supply cuts led by the Organization of the Petroleum Exporting Countries tightening the market, analysts have been raising their oil price forecasts.

The price of crude oil is seeing a steady decline.

US inventories fell by 7.13 MMbbl last week, the American Petroleum Institute was said to report.

Among refined products, Nymex reformulated gasoline blendstock-the benchmark gasoline contract-was up 0.82%, at $1.63 a gallon.

"We see Brent averaging $54 this quarter and $52.50 per barrel in 1H18, compared with our previous forecasts of $50 and $49.50 per barrel respectively", it said.