Brent prices in the international markets have been hovering around their 2 year highs as worries mount over Turkey blocking Iraqi oil exports from its ports. Turkey threatened to cut off the pipeline that carries around 500,000 – 600,000 barrels per day (bpd) of crude from Northern Iraq to the Turkish Port of Ceyhan.
Brent crude for November delivery was up 20 cents, or 0.34 percent, at $58.64 a barrel, as of 0418 GMT. It settled down 1 percent on Tuesday, after earlier hitting $59.49, its highest since July 2015 and more than 34 percent above a 2017 low.
U.S. crude for November delivery rose 28 cents, or 0.5 percent, to $52.16, having settled down 0.7 percent after hitting a five-month high of $52.43 in the previous session.
Oil prices also picked up as US Authorities revealed a surprise drop in inventories amidst rising concerns over supplies from Iraq, helping oil gain a positive momentum. Prices have witnessed a rebound in recent years, as output cuts, reduced Shale drilling and heightened demand have helped oil prices pick up in the international markets.
US Energy Information Administration (EIA), International Energy Agency also raised demand forecasts for oil during next few years.
Culmination of all these factors and their timing have substantially improved the oil prices in the international markets. Oil price fluctuation in both benchmarks is expected to continue as uncertainty looms over the supply concerns from Iraq, as Turkish President Tayyip Erdogan on Tuesday repeated a threat to cut off the pipeline that carries 500,000-600,000 barrels per day (bpd) of crude from northern Iraq to the Turkish port of Ceyhan.