Oil price hits all year high $58 per barrel

Oil price hits all year high $58 per barrel

Oil price hits all year high $58 per barrel

London Brent crude for November delivery LCOc1 was up 1 cent at $59.03 a barrel by 0621 GMT after settling up 3.8% on Monday.

US crude futures closed 34 cents, or 0.7 percent, lower at $51.88 a barrel, after hitting a five-month high of $52.43.

Major crude producers - OPEC and non-OPEC countries - agreed late previous year to cut production by about 1.8 million barrels per day for six months.

United States energy firms cut the number of oil rigs operating for a third week as a 14-month drilling recovery stalled.

"The potential impact from any disruption is fairly significant, with the pipeline having the capacity to ship 700,000 barrels a day", according to analysts at ING Group.

"When we count up the barrels across the next couple of years, we are coming up short", he said. North Korea is not an oil producer, so I can't see why the escalation of the situation there would lead to higher oil prices.

Even as both contracts rallied, concerns about US production growth weighed on WTI, widening the spread between the two, he said.

Even the most bullish traders and executives in Singapore said that it would be almost impossible for crude to hold above $65/bbl next year for this reason.

Its Managing Director, Mr. Yusuf Matashi, who set this targets in Benin, said the planned increase in production was due to ongoing transformation in the firm.

The fifth meeting of the OPEC+ ministerial monitoring committee on Friday will see ministers of OPEC and non-OPEC nations summing up the results of delivery of the agreement on oil production cap for August and eight months. Libya and Nigeria have brought back as much production as they can, he said. It is good news for the Nigerian economy as the price of crude oil stood at $54.59 per barrel.

The NPDC, he explained, had successfully turned around OML 40 asset from zero oil production to 12,000bpd. OPEC has also jumped on the opportunity to push prices higher, with the Saudis and Iraqis cutting more supplies recently than initially committed within the cartel.

NEW YORK, Sept 26 (Reuters) - Oil prices ended 1 percent lower on Tuesday after investors took profit following a rally to 26-month highs spurred largely by threats from Turkey to cut crude exports from Iraq's Kurdistan region. One of the other drivers was continued high compliance by OPEC on its pledged production cut, which has averaged 86% for the year.

Jim Ritterbusch of Ritterbusch & Associates in Chicago said delaying a decision allows producers "to leave some arrows in their quiver to throw something bullish at the market at their November meeting" if necessary.

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