Oil markets take a breather after jump the day before
Oil markets took a breather on Tuesday after prices jumped more than 3 percent in the previous session, with Turkey threatening to cut crude flows from Iraq’s Kurdistan region to the outside world.
Global marker Brent hit a two-year high on Monday, helped by output curbs by the Organization of Petroleum Exporting Countries and other major producers, although U.S. crude has lagged behind amid concerns that U.S. production-growth could stoke oversupply.
London Brent crude for November delivery was up 8 cents at $59.10 a barrel by 0037 GMT. It settled up 3.8 percent on Monday, after earlier touching a 26-month high.
U.S. crude for November delivery was down 11 cents at $52.11, having settled up 3.1 percent after marking a five-month high on Monday.
Turkish President Tayyip Erdogan threatened on Monday to cut off the pipeline that carries oil from northern Iraq to the outside world, intensifying pressure on the Kurdish autonomous region over its independence referendum.
Hundreds of thousands of barrels of oil come through the pipeline each day.
The spread between WTI and Brent futures <CL-LCO1=R> widened to more than $7 at one point, its steepest since August 2015.
U.S. crude inventories likely rose by 2.3 million barrels last week, while gasoline and distillate stockpiles probably fell last week, a preliminary Reuters poll showed on Monday ahead of data by the Industry group the American Petroleum Institute.