Oil prices have risen for the third day in a row after a survey indicated strong adherence to production cuts by the OPEC and others countries that include Russia.
Output cuts influenced the price rise, neutralising concerns about soaring US production, according to Reuters.
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Brent futures edged up 24 cents, or 0.3%, to trade at $69.89 a barrel, while US West Texas Intermediate (WTI) crude surged 33 cents, or 0.5%, to touch $66.13.
Based on the survey conducted by the news agency, higher output from Nigeria and Saudi Arabia overshadowed a further decline in Venezuela, resulting in an increased production by the OPEC last month from an eight-month low.
The survey determined that the OPEC achieved a production of 32.4 million barrels per day (bpd) last month, which represents an increase of 100,000bpd from December’s figures.
However, compliance by producers owing allegiance to the group implementing the deal to cut supply increased by 1% to 138% from 137% in December.
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By GlobalDataFutures brokerage AxiTrader chief market strategist Greg McKenna was quoted by the news agency as saying: “It underscores the commitment of the cartel, and their Russian partners, to keep a floor under the oil price.”
Meanwhile, the Energy Information Administration, earlier this week, reported that the US crude output reached the levels of more than ten million bpd in November for the first time since 1970.
