Oil price tops $60 for first time in more than two years

A view of Mexico's national oil company Pemex's refinery in Salamanca

Oil dips from four-week highs

WTI light sweet crude oil fell 29 cents to settle at USD52.18 a barrel.

Futures fell 0.6 percent in NY, halting three sessions of gains.

Crude prices had pulled back Wednesday following the release of USA inventory data, showing a 856,000-barrel rise in crude stockpiles in the week ended October 20.

The Organization of the Petroleum Exporting Countries and some non-OPEC producers including Russian Federation have pledged to reduce production by around 1.8 million barrels per day (bpd) until the end of March 2018 to drain a global supply glut. OPEC is said to be working on an exit strategy in an effort to reassure investors that the group will manage a controlled release of supplies to avoid a new glut when the curbs eventually expire.

U.S. West Texas Intermediate crude oil (WTI) ended the session up $1.26, or 2.4 percent, at $53.90 after reaching a session peak of $53.98 a barrel, the highest since early March.

Brent, the global benchmark, recently traded up 71 cents, or 1.2%, at $60.01 a barrel on ICE Futures Europe. That sent WTI's discount to global marker Brent to the widest in a month.

Meanwhile, analysts and investors are looking ahead to monthly US supply and demand data, out on Tuesday.

In August, Saudi Arabia announced it would cap its daily exports to 6.6 million barrels in a bid to accelerate the rebalancing of global inventories and has more or less stuck to this cap since then, ceding market share to other large producers, despite higher client demand as per statements from Saudi officials. "Initially, it was thought to be related to the hurricane, but to me it's becoming a little more structural".

The EIA data showed gasoline and distillate inventories both fell by more than 5 million barrels, and refinery utilization rates rose 3.3 percentage points.

Few fuel oil exports contributed to the build in inventories, industry sources said.

Iraq's 18.8 MMbbl in oil shipments to the U.S. last month topped those from the kingdom, the world's biggest oil exporter, by about 2.9 MMbbl, according to U.S. Customs Bureau data compiled by Bloomberg oil-market specialist Bert Gilbert. The week before, Iraq exported just 423,000 bpd to the U.S.

Global inventories remain above the five-year average with USA crude adding to existing stockpiles. Between February 11, 2016, and October 26, 2017, U.S. crude oil futures have approximately doubled while implied volatility has fallen ~68%.

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