Oil prices have gained marginally due to future traders' confidence, despite the crude market remaining oversupplied because of a consistent increase in US drilling.
Brent crude futures LCOc1 gained 14 cents to touch at $48.29 per barrel, while the US West Texas Intermediate (WTI) crude futures CLc1 increased 12 cents to $45.95, reported Reuters.
Analysts understood that the prices improved as traders increased their investment in crude futures. However, the crude oil market remained oversupplied due to an increase in US production.
Energy services firm Baker Hughes reported that in the week leading up to 9 June, US drillers added eight oil rigs, which takes the total to 741. This is the most since April 2015.
Since mid-2016, the US has increased production by more than 10% to 9.3 million barrels per day.
The rising output has largely undermined the efforts led by the Organization of the Petroleum Exporting Countries (OPEC) and other oil producers to cut down the oversupply.
OPEC and other producers that include Russia decided to reduce production by almost 1.8 million bpd to the first quarter of 2018 to revive oil prices.
Russian Energy Minister Alexander Novak said that there is no requirement to re-anlyse the deal, given that it is too early for any decisions.
Saudi Arabia's Energy Minister also lent support for the ongoing oil curb deal.
Image: An offshore oil platform. Photo: courtesy of QR9iudjz0/ FreeImages.com.