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Oil keeps growing as Turkey says it could block flow

Oil prices jumped high on Tuesday, particularly Brent crude grew to a record level in 26 months, which was catalyzed by possible blockade of crude from Iraqi Kurdistan to the rest of the world by Turkey.

London Brent for November shipping reached $59.48 per barrel following yesterday’s 3.8% settle up. US crude for November shipping climbed to $52.37, following the mark of $52.43 last seen five-months ago. Brent is growing for the fifth day in a row, starting from a bit over $55 a week back.

OPEC countries and other oil producing states said the market was on the steady route to balance, while the demand remains high.

Another factor driving the oil prices up was Turkish President’s statement on Monday that they could block the pipeline that goes from Iraq to other countries, which is directed against Kurdish region and its referendum on independence. Turkish city of Ceyhan normally pumps around 500,000-600,000 barrels daily.

Tomomichi Akuta from Mitsubishi UFJ Research and Consulting said that strong cooperation between oil producing countries in reduction of output, along with the news from Turkey, had propped up oil prices. Brent could go beyond $60 thanks to a short-term squeeze, he added.

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