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.

"The decision will help balance supply and demand."

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.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

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.