Oil prices have increased marginally as rising production in the US was negated by the expectations of an extension of the current restriction on crude output led by the Organization of the Petroleum Exporting Countries (OPEC).
Brent crude futures LCOc1 climbed 8¢ to $62.20 per barrel, while the US West Texas Intermediate (WTI) crude futures also gained 8¢ and traded at $56.50 a barrel, reported Reuters.
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The OPEC and other prominent oil producers have curbed daily production of crude since the beginning of this year as part of an effort to end global oil glut and restore the falling prices.
The deal is scheduled to end in March next year, though it may be extended when the participants meet on 30 November to discuss the ongoing policy.
Energy consultancy FGE was quoted by the news agency as saying: “If the OPEC / non-OPEC cuts continue, the stocks surplus will reduce to just some 50 million barrels above the five-year average in 3Q 2018 (down from 140 million barrels above that average now) and prices will hit $65-$70 per barrel.”
The deal to restrict oil production has encouraged US-based drillers to increase output over the last year.
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By GlobalDataEnergy consultancy Westwood Global Energy Group anticipated that the output may continue to increase faster than expected as a result of the improvement in the number of rigs currently operating in the country.
The total number of rigs in the US increased to 738 last week, which represents a significant increase over the 316 counted in mid-2016.
