Oil rises above $50 as Iraq positive for more OPEC action

Bloomberg

Oil extended gains above $50 a barrel in New York as Iraq raised the prospect of OPEC taking further steps to clear a global supply glut. West Texas Intermediate futures added 0.4 percent. Iraqi Oil Minister Jabbar al-Luaibi said there’s support in the Organization of Petroleum Exporting Countries to deepen output curbs by about 1 percent. Still, Iraq has failed to deliver the supply cuts it committed to under the current agreement.
US refiners are delaying scheduled maintenance as they resume operations after Hurricane Harvey, supporting demand for crude.
While oil has rebounded the past two weeks, prices have struggled to hold above $50 a barrel this year as rising U.S. output stifles supply curbs led by OPEC members and allies such as Russia. Caribbean islands still recovering from Irma are bracing for a third hurricane strike in two weeks, as Maria tracks toward the US coast.
Iraq’s suggestion “has a minor influence on prices — if it would have come from Saudi, it would probably have had a bigger impact,” said Giovanni Staunovo, an analyst at UBS Group AG in Zurich.
Brent for November settlement added 5 cents to $55.53 a barrel on the London-based ICE Futures Europe exchange. Prices fell 14 cents to $55.48 on Monday. The global benchmark traded at a premium of $5.05 to November WTI.
The largest U.S. refinery operated by Motiva Enterprises LLC in Texas is said to have pushed back work on a unit to April from September, while others churn out more fuel to take advantage of strong margins.
At least 13 refineries from Louisiana to Montana have delayed maintenance for weeks or months, according to company statements and people familiar with the situations. While some companies are making the most of better margins, others simply don’t have the personnel because workers were dispatched to help repair and restart storm-hit facilities along the Gulf of Mexico.
American crude stockpiles probably rose by 3 million barrels last week, before an Energy Information Administration report on Wednesday.