WTI and BRENT continue with their upward trend as even more analysts anticipate a greater likelihood that OPEC will extend cuts throughout 2018. According to EIA reports, there have been a continuous drawdown in oil inventories. Prices are expected to likely increase as the Kurd/Iraq situation drags on.
The total oil and gas rig count in the United States now stands at 898 rigs, up 329 rigs from the year prior, with the number of oil rigs in the United States decreasing by 8 this week and the number of natural gas rigs decreasing by 3. The US oil rig count now stands at 729.
Brent crude futures were at $63.84 per barrel at 0120 GMT, down 9 cents from their last close, but still near a more than two-year high of $64.65 a barrel reached earlier this week.
U.S. West Texas Intermediate (WTI) crude was at $57.05 per barrel, down 12 cents but also still close to this week's more than two-year peak of $57.92 a barrel.
Analysts said that the high prices were a result of efforts by the Organization of Petroleum Exporting Countries (OPEC) and Russia to withhold supplies in an effort to tighten the markets in addition to the rising demand and escalating political tensions.
OPEC is due to discuss output policy with respect to extension cuts on 30th of November, 2017. One of the leading financial companies, The Citi Group, warned investors that OPEC may not deliver on its voiced promises of extending cuts well into the future.
