Oil prices have revived marginally after falling to a three-month low level burdened by increasing US production that compromises OPEC-led output cuts.
Brent crude oil gained 15 cents to reach $52.34 a barrel US crude oil was also up by 15 cents to get traded at $49.43 per barrel, reported Reuters.
Both benchmarks experienced steep fall in the last two days after another increase in US crude inventories.
In the last week, US crude inventory increased by 8.2 million barrels to a record 528.4 million barrels.
NAB Group Economist Phin Ziebell was quoted by the news agency as saying: “Steep price falls in the last two days amid building the US inventories show that the market remains concerned about the supply demand balance.”
Oil and gas drilling in the US also increased as crude producers are planning to intensify their output from the North Dakota, Oklahoma and other shale regions.
The production from the Permian basin, one of the largest fields in the US, has already increased.
OPEC members and other prominent oil exporters had decided to reduce their output by 1.8 million barrels a day for the first six months this year.
However, the initiative had little impact in the oil market due to a consistent increase in US oil production.
Industry sources told Reuters that Saudi Arabian officials held a closed-door meeting with US oil companies, reportedly warning that the output cut would not necessarily be extended beyond the initial duration of six months to nulify rising US production.
Image: An offshore oil platform. Photo: courtesy of QR9iudjz0/ FreeImages.com.