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Writer's pictureTrade Magnates Team

Oil Prices Trading On A High Note Amid Market Re-balancing Expectations



Oil, Crude

Trade Magnates -On Thursday, Crude oil is trading at its highest level in three weeks in a prominent indication of a market rebalance start. WTI crude futures slipped to 51.90$ per barrel while Brent crude futures at 57.98$ a barrel close enough to its highest level since September at 52.37$ per barrel.

The weekly supply data from the U.S. came with a positive effect to oil prices keeping the high note for the fourth session in a row after the decrease in oil production by around 11% due to the effect of Hurricane Nate that hit the US Gulf Coast earlier this month.

The oil prices rose as investors and analysts expect the global oil producers to extend a deal to cut production beyond its current expiry date. A deal that was extended this year in May till March 2018 with an attempt to support oil prices and reduce oil inventories.

The tension is still surrounding the Oil prices with President Trump refusing to certify Tehran’s compliance over a nuclear deal. On the other hand, the Iraqi – Kurdish conflict over the rich oil fields of Kirkuk is still unresolved.

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