Oil hovers near $52 a barrel

Oil traded near $52 a barrel as the Organization of Petroleum Exporting Countries (Opec) reported record compliance with pledged production cuts and US drilling slowed again.

December futures were little-changed in New York. Opec and its partners including Russia achieved a record-high level of compliance to output cuts during September, according to a statement on Saturday. In the US, drillers reduced the rig count for a third week to the lowest since June, according to Baker Hughes. 

Oil is holding a second week of gains after the strongest signal yet that the Opec will extend supply curbs until the end of 2018. Tensions in Iraq, where the army has been retaking areas around Kirkuk from Kurdish forces, also helped to support prices the past week as pipeline flows from the region were disrupted.

“The lower US rig count number, the Opec compliance number and the geopolitical headlines from northern Iraq and Iran on sanctions have helped futures higher,” Ole Hansen, head of commodity strategy at Saxo Bank A/S said.

“But there are signs the market could be weakening with the seasonal refinery demand slowdown.”