For the first time in four months, U.S. oil prices rose about the $51 mark on Monday and analysts say it’s a time the oil market is finally rebalancing.
The rebalancing is largely due to the Organization of the Petroleum Exporting Countries cutting production. Since the start of 2017, Russia and other producers have reduced production by 1.8 million barrels a day and as a result, oil prices have risen 15 percent over the past three months.
While US prices rose over the $51 mark, the November Brent contract hit $47.61 early in the trading. US crude for November delivery dropped 36 cents at $51.02, still a fresh four-month high.
The slight growth in oil prices comes after the U.S. reported a drop in the number of oil rigs operating for a third week. Some suggest a 14-month drilling recovery has stalled.
But a check of regional oil prices found that Oklahoma Sweet crude is drawing only $47 a barrel at Coffeyville Resources refinery. The West Texas Intermediate price in Coffeyville was $47.25 as of Friday. Kansas Common brought $41 a barrel.