Oil prices have risen following an announcement made by Kuwait’s Oil Minister, stating that global fuel balances would be tightened due to economic growth and the removal of high-cost producers.
Global benchmark Brent crude oil increased 50 cents a barrel to $53.15, while the US light crude edged-up 45 cents at $50.08, Reuters reported.
Kuwait Oil Minister Ali al-Omair told the news agency that the Organization of the Petroleum Exporting Countries (OPEC) would stick to its output policy.
al-Omair said: "There are indications that a lot of high-cost oil production is starting to get out of the market and this will help improve prices."
He added saying that no calls were there from within OPEC at present to change the group’s output policy.
The minister’s latest comments come after data from Baker Hughes revealed that the number of rigs drilling for oil in the US fell for a sixth consecutive week.
Over the last six weeks, shale gas drillers have cut 70 rigs.
Goldman Sachs said that higher production is expected later in 2015 and in 2016 due to a drawdown of the backlog of uncompleted wells.
Oil prices were supported due to a weaker US dollar making purchases cheaper for other currency holders.