The price of crude was supported by signs that supply was already tightening

US crude oil

The current output concerns surrounding the Middle East have pulled oil prices higher on early Monday. Stockpiles in Asia are rising while markets in the stateside are showing indications of supply tightening.

The number of oil rigs drilling for fresh output in the United States dropped more than 7 to 736 in the week until October 20. According to energy services company Baker Hughes last Friday, this is the lowest level touched by U.S. oil drillings since June. This movement has also been influencing the oil market.

Looking on oil futures, U.S. West Texas Intermediate (WTI) crude prices advanced as high as 0.37 percent or 19 cents to finish trading at $52.03 a barrel. Meanwhile the international benchmark for oil prices London Brent crude rose more than 0.16 percent or 9 cents to settle at $57.84 a barrel on their previous session.

Rivkin Securities’ investment analyst William O’Loughlin said the price of oil is currently stable at the $50 per barrel handle due to the possibilities that the supplies in the Kurdish region of Iraq have been supporting prices, even though it may be disrupted. He added that the output in U.S. has been heavily affected by the previous hurricanes and this influenced the number of oil drillings declined for 3 straight weeks.

Outside the U.S., the oil consumption in Asia is still strong especially in India and China, given that the two nations are the world’s top importers. India imported as much as 4.83 million barrels per day (bpd) for the month of September.

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