Oil prices have remained stable as the global crude market continues to tightly amid OPEC-led production cuts getting largely negated by increasing US output. 

Benchmarks Brent were trading 3 cents higher at $55.96 per barrel, while US West Texas Intermediate dropped by 3 cents to 54.02 a barrel, reported Reuters.

The OPEC members had decided to reduce their output by 1.8 million barrels a day from 1 January this year to tackle the rising global oil glut.

Prominent non-OPEC oil exporters such as Russia also promised to curb output.

In the first month, the OPEC countries reported record compliance level while the underperforming Iraq and UAE pledged to quickly achieve their targets.

Since last November, oil prices have improved by around $10 per barrel.

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By GlobalData

Meanwhile, federal data states that US producers increased crude production to over nine million bpd.

Energy service firm Baker Hughes also reported that the number of oil rigs in the US increased by five in the week that ended on 24 February bringing the total to 602.

Sources told Reuters that Saudi Arabia wanted crude prices to rise to $60 a barrel this year, which would increase investment without further encouraging US shale production.

Image: An offshore oil platform. Photo: courtesy of Kasey Houston/FreeImages.com.