Oil prices have remained stable amid ongoing tensions in the Middle East, along with the significant addition of US oil rigs that suggests a further possibility for an increase in output.
Brent crude futures were trading at $63.55 per barrel, gaining 3 cents from the last close, while the US West Texas Intermediate (WTI) crude climbed 5 cents to touch $56.79 a barrel, reported Reuters.
The market received support from the ongoing OPEC-led production curbs that resulted in significant decline in the global oil glut.
Consultancy Timera Energy told the news agency: “If current trends continue, inventories are likely to return to the five-year average at some stage in 2018.”
On the supply side, traders anticipate fresh disruptions due to increasing political tension between Bahrain and Iran in the Middle East.
Bahrain accused Iran of being partly responsible for an explosion at its main oil pipeline that temporarily stopped oil supplies from Saudi Arabia. However, Iran rejected any form of involvement in the incident.
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Energy services firm Baker Hughes reported that US drillers added nine oil rigs in the week ending 10 November, the highest increase since June.
The addition brought the total number of operating oil rigs in the US to 738, significantly higher than 452 active rigs a year ago.
The oil production in the US also increased by more than 14% in the last one year to touch 9.62 million barrels a day.