Oil prices have increased due to signs of the global oversupply slowing down, although prices were held back by growing US production.

Brent crude oil LCOc1 increased 0.8% to reach $56.44 per barrel, while US West Texas Intermediate CLc1 gained 0.7% to total $54.35, reported Reuters.

Last week, crude prices dropped after US Energy Information Administration reported that stocks had increased for the seventh consecutive week.

This data indicated that US inventory grew by 564,000 barrels to reach 518.7 million last week.

Oil prices have been supported by the OPEC-led output cut deal.

"Data indicated that US inventories grew by 564,000 barrels to reach 518.7 million last week."

Members of this group have reduced their daily production by 1.8 million barrels to end the global oil oversupply.

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By GlobalData

In January, OPEC claimed to have a deal compliance rate of around 90%.

Prominent OPEC countries such as UAE and Iraq also lent their support to the new targets after lagging behind in meeting the compliance in January.

CMC Markets chief market analyst Ric Spooner was quoted by the news agency as saying: “The market is trading in a range. OPEC supply cuts are putting a base under the market at this stage.”

Image: An oil platform in Brazil. Photo: courtesy of Divulgação Petrobras / ABr/ Wikipedia.