Oil keeps gains on Iraq disruptions, US rigs

Oil prices largely held on to last week's gains on Monday, supported by supply disruptions in Iraq and a drop in US drilling.

However, the reduction in drilling rigs in the United States could be temporary, analysts said, as activity had been restrained by hurricane threats.

The number of US rigs drilling for new oil fell by seven to 736 in the week to October 20, the lowest level since June, energy services firm Baker Hughes said on Friday.

Global benchmark Brent crude was trading at $57.56 a barrel at 0957 GMT, down 19 cents. US West Texas Intermediate (WTI) crude was up 2 cents at $51.86.

"The market is in a tug of war between short-term bullish drivers which are very true, very visible and very strong versus real concerns for the oil market balance for 2018," said Bjarne Schieldrop, chief commodities analyst at SEB Markets.

One bullish factor is supply disruptions in northern Iraq. As of Sunday, oil exports from Iraq's Kurdistan via the Turkish Mediterranean port of Ceyhan were still flowing at sharply reduced rates between 200,000 and 250,000 barrels per day, two shipping sources said. Flows had increased slightly to 255,000 bpd by Monday, one source said. Typically, the pipeline transports around 600,000 bpd.

Iraqi Oil Minister Jabar Al Luaibi said on Saturday oil exports were increasing from the southern Basra region by 200,000 bpd to make up for a shortfall from the northern Kirkuk fields

Source: Khaleej Times