Oil prices have stabilised due to Saudi Arabia’s proposed limit on crude production next month and a weakening US dollar.

Markets also received support from economic growth.

However, rising US crude stockpiles and ample physical flows continue to keep the price of oil restricted.

Brent crude futures increased by nine cents, trading at $62.81 a barrel, well below the levels of more than $70 reached earlier this month, according to Reuters.

US West Texas Intermediate (WTI) crude futures remained flat at $59.19 a barrel.

The Saudi energy ministry has indicated that the country’s crude output will fall to 100,000bpd next month.

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Meanwhile, exports would be restricted to less than seven million bpd.

Investment bank RBC Capital Markets was quoted by the news agency in a note to clients: “While we continue to see a firming fundamental backdrop over the course of this year… investors should not discount the caution signs that have been emerging.

“Pockets of oversupply have been emerging in the physical market.”

“Pockets of oversupply have been emerging in the physical market. The tempering physical oil backdrop is… playing a central role in the recent price softness.”

Based on data from the American Petroleum Institute (API), US crude inventories increased by 3.9 million barrels in the week to 9 February as a result of rising US output to 422.4 million.

Since mid-2016, US crude production has registered more than 20% hike to breach the ten million bpd mark.

The soaring production seeks to undo the supply deficit witnessed by the markets last year in the wake of output cuts by OPEC and Russia.

According to the International Energy Agency (IEA), oil demand is set to grow by 1.4 million bpd this year.

The agency noted that output growth could rise faster than demand.