Global oil prices have increased due to a marginal fall in the number of US rigs drilling for new production.

Markets settled close to the three-year highs witnessed last week.

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US West Texas Intermediate (WTI) crude futures jumped 18 cents, or 0.3%, trading at $61.62 a barrel, according to Reuters.

Brent crude futures registered a growth of 15 cents, or 0.2%, trading at $67.77 a barrel.

Last week, WTI and Brent futures reached levels of $62.21 and $68.27 respectively, per barrel.

“Traders may decide that discretion is the better part of valour while markets wait for evidence of what happens to the rig count and production levels.”

The latest gains come after data from oil services firm Baker Hughes indicated the number of US rigs drilling for new production fell in the week of 5 January to 742.

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However, increasing production from shale drillers is expected to take US output past ten million barrels per day (bpd) in the near-term.

CMC Markets chief market analyst Ric Spooner was quoted by the news agency as saying: “The US oil price is now into a range that is anticipated to attract increased shale oil production said, at in Sydney.

“Traders may decide that discretion is the better part of valour while markets wait on evidence of what happens to the rig count and production levels over the next couple of months.”

Soaring US production continues to pose challenges to production cuts led by the OPEC, which is expected to continue until the end of this year.