Attention of the market is mainly focused on the forthcoming informal meeting of OPEC members in Algeria, which is scheduled for September 26-28.
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“The U.S. production factor has taken on a more bearish appearance as the oil rig counts have increased appreciably”, Ritterbusch said, ahead of another rise in weekly U.S. rig count reading expected at 1:00 p.m. EDT (1700 GMT) from industry firm Baker Hughes.
Global benchmark Brent crude oil futures were trading at $51.17 per barrel at 0647 GMT, up 28 cents, or 0.6 percent, from their last close.
A barrel of West Texas Intermediate for September delivery finished up 22 cents on the New York Mercantile Exchange to close at US$49.11.
Crude oil prices have advanced more than 20% from their August 2nd low over the past several sessions, signifying a bull-market run. Saudi Oil Minister Khalid al-Falih previously spoke about possible participation of the country in the coordinated actions of OPEC and main exporters to stabilize the market.
But talk from Iran didn’t a lasting damper on oil prices, which trade roughly 8% higher week to date. The global benchmark crude settled at a $1.77 premium to WTI for October.
USA drillers this week added oil rigs for an eighth consecutive week, the longest recovery streak in the rig count in more than two years, data from oil services firm Baker Hughes showed.
A stronger dollar also weighed on prices as it rose 0.27% against a basket of currencies. “The momentum is still very bullish”.
If futures contracts for December 2017 rise from around $53 a barrel now to trade above $55, “we think that the global supply and demand forecasts will need to be adjusted with more.crude oil coming to the market”, the firm said. Officials from both Saudi Arabia and Russian Federation have played down the chances of a deal, and Iran hasn’t yet decided whether it will attend the Algiers talks. Iran’s refusal to join the April talks in Doha ultimately prompted the Saudis to block a deal.
In other oil-market news, a glut of crude oil stored in ships on the North Sea is starting to dissipate, with demand increasing as traders take advantage of remaining discounts before maintenance begins at Britain’s largest oil field. Brent earlier hit $51.22.
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Exxon Mobil Corp., Chevron Corp. and Hess Corp. have agreed to bid together for rights to drill for crude in Mexico’s deepwater oil areas, according to a person with direct knowledge of the plans.
