Oil Prices on a positive trajectory as supply cuts end glut

Oil prices were mixed in today’s session but are all set to report weekly gains as future outlook for oil strengthens. Investors believe the global glut is weakening and prices for oil are expected to pick up during the coming few months.

U.S. crude was down 4 cents at $51.52 a barrel at 0450 GMT, having spent much of the session slightly higher. The contract is heading for a fourth consecutively weekly gain and is on track for a 9 percent advance this month.

Brent rose 14 cents, or 0.2 percent, to $57.55 a barrel, heading for a fifth weekly climb and a 10 percent gain for September.

Major oil suppliers barring US have informed that they will continue to curb output in future. The OPEC cuts are supported by the Kurdish crisis which continues to pose a threat to oil supplies in the coming months, as Turkey warns of blocking the pipelines that transports oil to the Turkish ports.

The said region exports around 500,000 barrels a day through a pipeline which crosses through Turkey to Mediterranean Sea.

The Turkish government refuses to acknowledge Kurdistan as a state and has promised to deal only with Iraqi Government on any crude supplies in future, terming the referendum as unconstitutional.