Brent crude oil prices have increased after Qatar’s Energy Minister said that oil output freeze has been agreed with Saudi, Russia and Venezuela.
Brent crude futures edged up 81 cents and stood at $34.20 a barrel, while the US crude futures rose 63 cents at $30.07, Reuters reported.
Qatar Energy Minister Mohammad bin Saleh al-Sada said that the decision to freeze output at January levels would help stabilise the oil market, which has been struggling with low prices due to the global oversupply.
According to analysts, the decision will help balance supply and demand.
Other major oil producers are expected to follow the suit.
During the past 20 months, oil prices have fallen by more than 70% due to an increase in production from Organization of the Petroleum Exporting Countries (OPEC) members, as well as Russia.
Speaking at a meeting in Doha, Saudi Arabian Oil Minister Ali Al-Naimi said that freezing of output will be enough to improve the oil market and the next steps would be planned soon.
The fall in the oil price forced governments to reduce spending and increase deficit forecasts.
Meanwhile, crude prices in the US are expected to witness pressure due to a rise in inventories and refiners cutting back processing runs.