Oil Prices Increased above $60 during Tightening Supply & Strong Demand

On Monday, oil prices increased over supply concerns in the Middle East as the US market showed further signs of tightening while demand in Asia keeps rising.

Brent crude futures, the international benchmark for oil prices, were at $57.84. U.S. West Texas Intermediate (WTI) crude futures were at $52.03 per barrel.

The amount of U.S. oil rigs drilling for new manufacture dropped by seven to 736 in the week to October 20, the nethermost level since June, General Electric Co.’s Baker Hughes energy services firm said on Friday. RIG-OL-USA-BHI.

A lot will be depending on demand to guide prices, with the US Market tightening, flows from Iraq reduced because of fighting between government forces and Kurish militant groups. Production is again, still being withheld as part of a pact between the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC producers to tighten the market.

In the main growth areas of Asia, consumption stays sturdy particularly in China and India, the world’s number one and 3 importers. Records show that India imported 4.83 million barrels per day (bpd) of oil in September as numerous refiners resumed operations after extensive maintenance to meet rising local fuel demand.

The country’s September imports stood 4.2% above this time last year and about 19% more than in August, ship-tracking data from industry sources and Media Analytics showed.