Oil prices increased after Saudi Energy Minister Khalid al-Falih’s announcement that OPEC would have to coordinate with non-member countries, including Russia, for output cuts into next year to reduce global inventories.

The prices grew today after witnessing a drop over concerns of a trade stand-off between US and China.

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Brent crude futures inched up by 19¢ to touch $69.10 a barrel while US West Texas Intermediate (WTI) crude futures grew 27¢ to reach at $64.57 a barrel, reported Reuters.

Since last January, OPEC and some non-OPEC countries including Russia have curbed production by 1.8 million barrels a day. However, these efforts were negated by the rising US output.

“Global inventories are already at the bottom end of the five-year range.”

PVM was quoted by Reuters as saying: “As the Saudi guessing game for the new rebalancing target begins, Brent seems well positioned to have another crack at the $70 (a barrel) level.”

According to analysts, the trade stand-off between US and China may affect oil market, but for now, it seems fine.

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BRS Brokers energy research head Andrew Wilson said: “Geopolitical tensions are coming to the front. But global balances are relatively tight at the moment. That’s enough to amplify relatively small factors.

Morgan Stanley expects an increase in seasonal demand in the coming months.

It said: “We are only three-four weeks away from peak refinery maintenance, after which crude and product demand should accelerate. Global inventories are already at the bottom end of the five-year range.”

“There are sufficient reasons to expect oil prices to strengthen further from here, and we stick with our (Brent) $75 per barrel call for Q3.”