The reasons for the rise in the price of a barrel of oil above the $ 60
Baghdad - Agencies
Oil prices ended last week above $ 60 a barrel for Brent crude and about $ 54 for US light crude for the first time in more than two years, but this did not take the headlines for several reasons.
Oil prices have continued to rise gradually since last month, with signs that the Organization of the Petroleum Exporting Countries (OPEC) and producers from outside (specifically Russia) have agreed to cut production by 1.8 million bpd.
With an average price of $ 56 a barrel in September, the price rise from September 2016 was about 20 percent.
The role of OPEC
The rise in prices came as US production began to rise following a period of decline as a result of storms and hurricanes in the past period, as US official figures showed an increase in production by 1.1 million barrels per day last week, bringing the total US production to 9.5 million barrels per day.
Before the storms and hurricanes, US oil production reached about 12 million barrels per day (bpd) outperforming Saudi Arabia's largest production globally.
This means that OPEC, in agreement with Russia and other producers from outside, is still able to control the market if its members are committed to cap agreements.
This is an important factor in the rise in prices above the previous average of between 45 and 55 dollars a barrel and the possibility of continuing to slide 50 50 dollars a barrel until the next OPEC meeting on 30 November.
According to Saudi and Russian statements, it appears that OPEC will extend the agreement to cut production until after March 2018 date of the end of the current agreement.
One of the immediate factors that led to the rise in oil prices in the last week, in addition to controlling the supply and forcing consumers to withdraw from the commercial stocks, the decline in the exchange rate of the US dollar.
It is known that the price of the dollar is inversely proportional to the price of goods denominated in it, including oil and gold.
Other factors are that US production, despite last week's increase, is still below its recent limit (between 1 million and 2 million bpd less).
Although oil and shale gas production in the United States has improved since oil prices rose above $ 40 a barrel, it remains much lower than it was before prices collapsed and many rock oil producers left the market.
In addition, US pressure on Iran and the possibility of a return to sanctions, which means that Tehran's ability to increase its output significantly, is falling sharply.
The conditions of Iraq, Libya and Nigeria remain security and political factors moving psychologically in the market.