Oil Prices stable on the back of OPEC led cuts

Oil Prices were stable on Thursday supported by OPEC led supply cuts, tensions in the Middle East and decline in oil production.  

Brent crude futures were at $58.10 at 0411 GMT, slightly lower than their last close, but around 30 percent above mid-year levels.

U.S. West Texas Intermediate (WTI) crude was at $51.97 per barrel, also down a touch from its last settlement, but almost a quarter higher than in June.

Analysts continue to worry over the supply situation given the geopolitical risks increasing throughout the Middle Eastern region. Iraqi forces this week captured the Kurdish-held oil city of Kirkuk, responding to a Kurdish independence referendum, triggering fears of supply disruptions.

United States President Donald Trump’s decision to “decertify” the Iran nuclear deal may not have the immediate effect on the oil prices, but the decision may have a long term in the international oil prices. Geopolitical risks have had very little influence on the oil prices in international markets. By 2018, the oil supply situation will fall back to the average levels pre 2013 era.