Why Oil is heading for 3rd weekly gain

Brent the most internationally traded crude grade has risen sharply to $57.10 per barrel in early Friday trading OPEC and non-cartel members continue to enforce the production cuts agreed at the end of last year.

Oil price is also rising on the back of tensions generated by reports that the U.S. is said to be planning new sanctions on Iran after a missile test.

Positioning is very long here, but this crude market just keeps on rising.

OPEC cut output by 840,000 barrels a day last month, but has more work to do to fully comply with last year’s historic production deal.

OPEC pumped 32.3 million barrels a day in January, according to a Bloomberg News survey of analysts, oil companies and ship-tracking data.

The 10 members of the group that pledged to make cuts in Vienna two months ago implemented 83 percent of those reductions on average, but their efforts were offset by increases from Iran, Nigeria and Libya that were permitted under the terms of the agreement.