Oil prices have increased after the Organization of the Petroleum Exporting Countries (OPEC) indicated that it will stick to its agreement on supply cuts despite US President Donald Trump’s tweet.
International Brent crude futures increased 0.7% and were at $65.65 a barrel, while US West Texas Intermediate (WTI) crude oil futures rose 0.9% at $55.99 a barrel, Reuters reported.
A weekly report released by the American Petroleum Institute (API) highlighted a reduction in US crude oil inventories by 4.2 million barrels in the week ending 22 February to 444.3 million barrels, pushing oil prices further.
Trump tweeted that oil prices were getting too high for the global economy and urged OPEC to relax its supply cuts.
This year, supply cuts by the OPEC, along with some non-affiliated producers such as Russia, offered some support to oil markets.
Last year, the group known as OPEC+ agreed to cut output by 1.2 million barrels per day (Mbpd) to increase prices.
The group indicated that it will stick to its supply cuts despite pressure from Trump.
Benjamin Lu of Phillip Futures was quoted by the news agency as saying: “Crude oil futures bounced as OPEC members remained firm on planned production cuts despite heightened political pressure from US President Trump early this week.”
Despite the output cuts by OPEC, oil remains in ample supply as crude production in the US increased by more than 2Mbpd over the past year to 12Mbpd.
Investors are watching for official data to be released by the US Energy Information Administration (EIA).