Oil Price rose on Monday to a nine-month high as Turkey threatened to shut down Kurdish crude exports.
Brent Crude for November delivery rose $1.60, or 2.81 percent, at $58.46 a barrel by 12:52 p.m. EDT in New York on the London-based ICE Futures Europe exchange. While WTI Crude for November delivery was up $1.12, or 2.21 percent, at $51.78 on the New York Mercantile Exchange, hitting a fresh four-month high.
"The market is OK, but these levels are beginning to look a little precarious," said Robin Bieber, technical chart analyst at London brokerage PVM Oil Associates. "The key to further upside is Brent staying over $56.65. WTI has no target higher until it can close over the 200-day at $51.01."
Turkish president warned that Ankara could shut off Iraqi Kurdistan’s main export pipeline to punish the Iraqi for holding an independence referendum.
“Erdogan’s speech is a reason driving prices higher as the market worries there could be supply disruptions and that’s getting priced in,” said Michael Poulsen, an analyst at Global Risk Management Ltd. “OPEC’s comments are also supportive. An extension of the deal would probably be required and OPEC will likely keep it brewing for a while with its comments.”