Crude prices have increased significantly this month just as demand seems sturdier compared to any point in previous months, especially in China.
Brent crude futures were at $57.
As for crude's long-term fate, get set for oil at $10 per barrel over the next six to eight years: that's the contention of Chris Watling, chief executive of Longview Economics, who thinks the price drop will be caused by alternative energy fuels attracting more and more investors. WTI crude oil continues to trade higher on Tuesday morning, gained 0.50% to trade at $52.12. 78 per barrel, slightly down from their last settlement, but 2 percent higher than last Friday and nearly a quarter above mid-June levels.
The common explanation given today by most analysts for the rise in Crude Oil is the military clash between Kurdish and Iraqi army forces near Kirkuk, an important oil producing region in northern Iraq.
Under the agreement, Iran agreed to restrict its nuclear programme for at least 10 years in exchange for lighter economic sanctions that had crippled its economy, wiping out almost 1 million bpd of Iranian oil exports from the market.
Analysts forecast US crude inventories declined by about 4.2 million barrels in the week to October 13.
"In the case of Iran, there are likely no immediate impacts on oil flows and there remains high uncertainty on potential reintroduction of USA secondary sanctions".
US President Donald Trump refused to confirm Iran's compliance over a nuclear deal that has left Congress 60 days to consider implementing new sanctions against the country.
Darling went on to predict that 2018 will see Brent at $47 "predicated on less compliance as we go into next year, also USA shale continuing growth.and also non-OPEC supply beating the market's expectations, like the former Soviet Union countries". The cuts are likely to be shared again by non-OPEC members led by top oil producer Russian Federation, which lessened output joining OPEC from January. The group is managing the global glut of crude oil after noticing the prices halve and revenues dip sharply in the recent times. Both contracts traded up almost 1 percent and down over 1 percent during the day.
The rate of compliance between OPEC and other participating countries was about 86%, reported Birol.
The dollar bounced back to 112.07 yen, from Monday's low of 111.65, which was its lowest since September 26. It last stood at $7,110.5.