BAGHDAD (Reuters) -
Oil prices closed higher, ending the month on gains of more than 5 percent, but analysts said a positive atmosphere helped global Brent crude to record the highest level in more than two years that could encourage US producers to export more oil.
Brent crude futures rose 47 cents, or 0.7 percent, to settle at $ 61.37 a barrel near their July lows of earlier this week, up about 37 percent from the year's low in June.
US benchmark WTI futures closed up 23 cents, or 0.4 percent, at $ 54.38 a barrel near a two-year high.
Traders and brokers said they were adjusting their positions after oil prices jumped about 5 percent in October.
Brent ended the month up 6.7 percent, while US crude rose 5.2 percent. The price gap between US crude and Brent has widened to around $ 7, making it attractive to exporters.
US crude exports jumped nearly 2 million barrels per day and output has risen nearly 13 percent since mid-2016 to 9.5 million bpd.
Markets are waiting for the latest weekly oil inventories in the United States, which will be released from the US Petroleum Institute later on Tuesday and from the Energy Information Administration on Wednesday.
Six analysts polled by Reuters expected inventories to fall 2.6 million barrels in the week ending October 27.