Oil prices have remained stable, continuing with previous gains made due to the ongoing conflict between Iraqi and Kurdish forces that can cut off crude supplies from northern Iraq, as well as the continued political tension between the U.S. and Iran. This is months after of range-bound trading during which OPEC-led supply cuts buoyed crude prices but rising US output capped markets.
The $1.50-a-barrel rally in Brent crude, the benchmark for more than half the world's oil, since Friday morning could be interpreted as reflecting expectations for an outage of 250,000 barrels a day over three months, Goldman said.
MSCI's broadest index of Asia-Pacific shares outside Japan gained for a fifth day running to its highest level since late 2007.
According to some reports, Kurds had shut down some 350, 000 barrels per day (bpd) of production from major fields Bai Hassan and Avana because of security worries.
In addition, the conflict in Iraq has shocked markets as it adds to growing strains between the United States and Iran.
Some 1 million bpd of oil was cut from global markets during the previous round of sanctions against Iran.
Also supporting an uptick in crude oil prices were concerns over renewed US sanctions against Iran after President Donald Trump on Friday refuse to certify to Congress that Tehran is complying with the 2015 Iran nuclear agreement.
There were also concerns about the stability of Iraq, the second biggest oil producer within the Organization of Petroleum Exporting Countries, behind Saudi Arabia.
Birol said the rate of compliance by OPEC and its partners in their targeted cutting of about 1.8 million bpd between January this year and March 2018 was about 86 percent.
"Crude demand will climb an average 1.2 million barrels a day through 2022 and slow to 300,000 barrels a day in 2035 to 2040", OPEC Secretary-General Mohammad Barkindo also said on Sunday in Kuwait, giving a preview of OPEC's 2017 World Oil Outlook set to be released on November 7, Bloomberg reported.
Various analysts are also revising the oil price predictions as the global crude market continues to tighten.
The dollar bounced back to 112.07 yen, from Monday's low of 111.65, which was its lowest since September 26.
As for crude's long-term fate, get set for oil at $10 per barrel over the next six to eight years: that's the contention of Chris Watling, chief executive of Longview Economics, who thinks the price drop will be caused by alternative energy fuels attracting more and more investors. It last stood at $7,110.5.