Oil Price keeps Rising, Hits all year $58pbd High

Oil Price keeps Rising, Hits all year $58pbd High

Oil has gained about 10 per cent this month in NY and its global counterpart traded in London reached a two-year high on Monday amid forecasts for rising consumption in the face of output cuts by the Organisation of Petroleum Exporting Countries' and partners including Russian Federation.

Adding to the market's upside was Turkey's threat to cut oil flows from Iraq's Kurdistan region toward its ports to pressure the Kurdish autonomous region from attempting to break free of Iraq.

Although most oil prices edged slightly lower on Wednesday, the outlook for oil prices hitting $60 is still mostly positive as most oil prices outlook remains in line with a 26-month high.

"We're expecting the second half to see improvements, and we're witnessing those improvements as we speak", UAE Energy Minister Suhail Al Mazrouei said on Monday in Abu Dhabi.

Brent for November settlement was little changed at $57.92 a barrel on the London-based ICE Futures Europe exchange, after losing 54c on Wednesday.

Brent November crude futures were down 44 cents at $58 US a barrel late morning Wednesday, while USA crude for November delivery edged up seven cents to $51.95 U.S.

Now U.S. crude exports are either on smaller tankers, which are relatively costly to operate on long routes to Asia, or the cargoes are transferred at sea to a bigger vessel, a process that can add around $2 a barrel to shipping costs to the major consuming region of Asia.

Trump says Spain should remain united
Thus far, the risks associated with the Catalonia referendum have been low-key with little angst being seen on currency markets. Organisers of protests last week have been threatened with charges of sedition.

The price of the European benchmark oil blend rose to its highest level since the summer of 2015, amid signs that the worldwide glut of supply may start to dissipate. OPEC secretary-general Mohammed Barkindo said this week that crude exports from the Middle East to Asian markets were expected to increase by 7.5 million barrels a day between 2016 and 2040, to 22 million barrels.

Opec has had to contend with rising U.S. shale production offsetting its cuts in recent months, but U.S. energy firms reduced the number of oil rigs operating for a third week in a row last week, bringing a 14-month drilling recovery stuttering to a stop.

The 14-member Organization of the Petroleum Exporting Countries, led by No. 1 oil exporter Saudi Arabia, met in Vienna on Friday with the world's largest crude producer Russian Federation to discuss a range of price support options for oil. Total volume traded was about 24% below the 100-day average.

The API report also showed that gasoline stockpiles rose by 1.47 million barrels, while distillate supplies fell by 4.53 million, according to people familiar with the data, who asked not to be named because the information isn't public.

Brent's premium over USA crude (WTCLc1-LCOc1) widened to a more than two-year high this week, in part due to reduced demand stemming from Harvey, but it has since narrowed and could tighten further in coming weeks due to higher margins for refined US products.

OPEC and non-OPEC producers meeting in Vienna last week said the market was well on its way towards rebalancing. In terms of value, that means crude oil produced in Texas was also worth more. But a "more pressing source of price angst", he noted, "stems from the unrelenting rise in US crude output". Momentum remains positive as the MACD (moving average convergence divergence) index prints in the black with an upward sloping trajectory which points to higher prices for crude oil.

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