Crude oil futures surge 0.80 pc on overseas cues

WTI Crude Oil

Weekly December WTI Crude Oil

The supply disruption in Iraq comes amid ongoing political uncertainty in the region following conflict between Iraqi and Kurdish forces.

Oil prices held on to last week's gains on Monday, supported by supply disruptions in Iraq and a drop in United States drilling.

Investors are also reacting to the statistics of Baker Hughes, a GE company-American industrial service company, which reported on the dynamics of the number of drilling rigs in the U.S. So, for the week ended on October 20, the number of drilling rigs in the U.S. fell by 15 units, or 1.6 percent, to 913 units.

The weekly rig count is an important barometer for the drilling industry and serves as a proxy for domestic oil production.

West Texas Intermediate oil for December delivery CLZ7, +0.37% rose 5 cents, or 0.1%, to $51.89, adding to a 0.6% gain from Friday.

Meanwhile, at the USA benchmark West Texas Intermediate crude prices surged 0.50 per cent to Dollars 52.10 a barrel and Brent crude climbed 0.24 per cent, to USD 57.89 a barrel.

Gains in USA shale oil production and a previous OPEC policy to defend a market position with more production pushed the price of oil below $30 per barrel past year.

OPEC and its partners chose to extend its production cuts till March 2018 in Vienna on May 25, as the oil cartel and its allies step up their attempt to end a three-year supply glut that has savaged crude prices and the global energy industry.

The cartel's next meeting is set for November 30 in Vienna. It closed up around 3.5% for the week.

The reduction in the output of USA production also increased the North American WTI crude benchmark.

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.

The amount of USA oil rigs drilling for new production fell by seven to 736 in the week to October 20, the lowest level since June, energy services firm Baker Hughes said on Friday.

The American Petroleum Institute, an industry group, is to publish its weekly report on USA oil supplies. "US shale oil completions have been rising every month since January", he said.

The U.S. government is set to produce a weekly report on natural gas supplies in storage.

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