Oil prices dipped today after posting increases earlier this week, but the losses were curbed due to output cuts by OPEC and its allies.

Brent crude futures LCOc1 dropped $0.35 to touch at $69.12 a barrel, while US West Texas Intermediate (WTI) futures CLc1 fell $0.24 to reach $64.93, reported Reuters.

In the last two weeks, oil prices increased by almost 10% due to a weaker US dollar and tensions in the Middle East.

Tensions between Iran and Saudi Arabia raised concerns over the supply of oil, which was already restricted through an OPEC-led agreement.

Prices have also increased significantly since November due to a drop in US crude stocks.

“We have come within half a dollar of key resistance on May crude and that is attracting some profit-taking.”

Saxo Bank senior manager Ole Hansen told Reuters: “The bulls are back in town and they’re all looking for much bigger gains. But I think it is too early and today is really just a reality check.”

Hansen further added: “We have come within half a dollar of key resistance on May crude and that is attracting some profit-taking.”

On Wednesday, the US Energy Information Administration has stated that US crude stocks C-STK-T-EIA dropped by 2.6 million barrels to 428.31 million barrels in the week ending 16 March, as opposed to expectations of a 2.6 million barrels increase. This was because refinery maintenance works in the US has reached its peak this month.

US production increases have negated the output cuts of the OPEC and its allies. This deal began at the beginning of this year and is expected to end in December.