Oil prices have stabilised due to growing US drilling activity, which offset measures taken by OPEC and other key exporters to reduce output.

Brent crude oil LCOc1 edged up by 10 cents to touch $55.33 a barrel, while US light crude CLc1 dipped by 10 cents a barrel at $52.53, reported Reuters.

Last year, OPEC agreed to reduce production by almost 1.8 million barrels per day (bpd) from the beginning of this year to balance supply and demand dynamics. 

With prices increasing initially, US oil producers have increased their drilling acitivity, which in turn is negatively affecting the prices.

US drillers are attempting to leverage the increase in prices of oil, which has touched more than $50 a barrel now following a two-year low.

"According to the estimates of Goldman Sachs, year-on-year US oil 'production will rise by 290,000bpd in 2017'."

This month, OPEC's oil production dropped by more than one million bpd, according to a Reuters survey. Meanwhile, US shale output is gradually growing, reported the news agency.

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By GlobalData

For most of this month, the Brent crude oil was close to $55 a barrel, while US crude was around $52.50.

According to the estimates of Goldman Sachs, year-on-year US oil 'production will rise by 290,000bpd in 2017' in case a backlog on rigs yet to turn active is included.

According to Baker Hughes data, the number of US oil rigs that were active last week were the highest since November 2015.