The price of Brent crude oil increased 2% to above $62 a barrel on Thursday as more energy companies cut investments worldwide.
Reuters reported that Brent for February delivery traded at $62.28, while US crude for January delivery increased to $57.47 a barrel.
Chevron has dropped plans to drill a deepwater well in Canada’s Arctic Beaufort Sea, citing economic uncertainty due to the sharp decline in oil prices.
Energy firm Marathon Oil said it will spend about 20% less in identifying and producing oil for 2015.
Other companies, including Husky Energy, MEG Energy and Penn West Petroleum, have also announced investment cuts due to declining oil prices.
Several OPEC members supported an output reduction at the cartel’s meeting last month.
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Reuters said that OPEC members are now coming to the same view as Saudi Arabia, that they need to focus on increasing market share.
A delegate from an OPEC country, which wanted an output reduction, was quoted by the news agency as saying: "The producers have not blinked. We are just watching and selling oil at whatever the price is."
Saudi Arabia increased its exports in October to 6.9 million barrels per day (bpd) from 6.7 million bpd in September.