Oil prices have erased some losses made in the previous session due to a decline in exports from Venezuela.
However, rising US output continues to keep a lid on a further rise in prices.
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Brent crude futures LCOc1 increased by 51 cents, or 0.7%, to reach $75.87 per barrel, while US West Texas Intermediate (WTI) crude CLc1 went up 30 cents, or 0.5%, to stand at $65.03, Reuters reported.
Venezuela is finding it tough to meet its supply obligations after a slump in output from its oil fields.
Tankers are reportedly waiting at the country’s main oil port to load more than 24 million barrels of crude.
Given the ongoing supply issues, state-owned PDVSA is exploring the possibility of declaring force majeure on certain exports.
Haitong Futures oil analyst Bruce Xue was quoted by the news agency as saying: “The decline in Venezuelan supplies has been bigger than the market expected.
“Increases in US production will not be able to fully offset the drop from Venezuela and Iran.”
Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) and Russia are scheduled to hold a meeting in Vienna on 22 June to discuss production policy, including the possibility of revisiting the ongoing supply cuts.
OPEC-member Iraq stated that a production increase is unwarranted in the wake of a stable market and good prices.
Last week, the US crude oil output C-OUT-T-EIA reached 10.8 million barrels per day, which represents a 28% increase in two years.
Based on government data, the US crude stockpiles soared 2.1 million barrels in the week to 01 June, to touch 436.6 million barrels.
