The price of Brent crude oil steadied around $61 a barrel today, following Kuwait Oil Minister Ali al-Omair’s announcement that lower supply levels may support prices in the second half of 2015.
Reuters reported that Benchmark Brent futures dropped 63 cents to $60.89 a barrel and US crude was down 55 cents at $52.23.
al-Omair was quoted by the news agency as saying the recent rally will start holding gains now and hopefully in the second half of 2015 we will see better prices.
The price of Brent crude has increased by over 30% in the past four weeks supported by indications of reduced industry investment.
Oil reached $45.19 a barrel in January 2015, the lowest in almost six years, declining from $115 in June 2014.
al-Omair said the current oil surplus was now ‘definitely lower’ than 1.8 million barrels a day.
Oil markets rose strongly last week following another drop in the US rig count, pushing Brent back above $60 a barrel for the first time since December 2014.
The increasing tensions with Islamic State militants and an attack on an oil pipeline in Libya helped support prices.
The El Sarir oilfield in Libya is still not pumping oil to Hariga port following an attack on a pipeline.