Oil weaker as Iraq seeks exemption from OPEC cut

After a brief recovery on Friday, oil prices on both sides of the Atlantic fell back in the red zone, as markets reacted negatively to weekend’s comments from Iraqi oil minister.

WTI holds $ 50 mark

Currently, both crude benchmarks trade about -0.50% lower, with Brent at $ 51.60, while WTI hovers around $ 50.60 levels. Oil prices keep losses as comments from Iraq’s oil minister delivered over the weekend; continue to weigh on the sentiment around the oil market.

Iraqi oil minister said that he wanted Iraq to be exempt from a production cut by the Organization of the Petroleum Exporting Countries (OPEC) that the group plans to decide at its Nov. 30 meeting.

Additionally, ongoing strength seen in the US dollar versus its major peers amid rising chances of a Fed rate hike this year, also collaborates to the downbeat tone in oil.  A stronger USD makes dollar denominated commodity expensive for the holders in foreign currencies.

Also, bearish US rigs count report also exerts pressure on the black gold. The US oil rigs rose by 11 last week, posting the first double-digit increase since August.

All eyes now remain on the headlines from OPEC and non-OPEC producers on oil output cut issue. While weekly crude supply reports from the US will also remain in focus later this week.