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Crude Oil Prices Bounce Off Session Lows as Optimism Dominates

Published 10/20/2017, 10:18 AM
© Reuters.  Crude oil erases losses as traders continue to see market tightening
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Investing.com - Crude oil prices bounced off session lows on Friday, after traders locked in profits from the commodity's recent gains as optimism surrounding a gradual tightening of the market continued to support.

The U.S. West Texas Intermediate crude November contract was up 13 cents or about 0.25% at $51.43 a barrel by 10:15 a.m. ET (14:15 GMT), off one-week lows of $50.73 hit earlier in the day.

Elsewhere, Brent oil for December delivery on the ICE Futures Exchange in London was up 29 cents or about 0.51% at $57.52 a barrel, also bouncing off a one-week trough of $56.71.

Crude prices had strengthened after the Energy Information Administration reported this week that crude oil inventories fell by 5.7 million barrels, marking the fourth straight weekly decline.

Prices were also boosted by expectations that major global producers will extend a deal to curb production beyond its current expiry date next March.

Market participants also continued to monitor developments in the Middle East after Iraqi troops regained control of two major oilfields northwest of Kirkuk from Kurdish Peshmerga forces this week. Iraq's oil ministry expects to bring the fields back on stream on Sunday.

In other news, Russia's biggest oil company, Rosneft, has agreed to take control of Iraqi Kurdistan's main oil pipeline in a $1.8 billion investment.

Elsewhere, gasoline futures were up 0.74% at $1.66 a gallon, while natural gas futures dipped 0.10% to $2.873 per million British thermal units.

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