Oil prices have risen due to indications that global crude market is tightening due to reduced production from OPEC and non-OPEC producers.

However,prices were contained from growing further due to increasing in oil drilling activities in the US.

Benchmark Brent crude LCOc1 grew 40 cents to reach $55.63 per barrel while US light crude CLc1 edged-up to 40 cents higher to $53.15 a barrel, reported Reuters.

OPEC countries and other key non-OPEC oil producers stated that they have already started producing 1.5 million bpd less than the agreed 1.8 million bpd.

"This is the biggest quarterly decline since the fourth quarter of 2013."

This production cut is balancing the demand-supply dynamics.

Bernstein Energy reported that in the last quarter of the previous year, global oil inventory decreased by 24 million barrels to 5.7 billion barrels.

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By GlobalData

In a note to clients, Bernstein analysts were quoted by the news agency as saying: “This is the biggest quarterly decline since the fourth quarter of 2013, confirming that inventory builds are now reversing as the market shifts from oversupply to undersupply.”

The fall in inventory was partially offset by increase in US production.

Oil production in the US has increased by more than 6% since mid-2016.