The price of oil rose for the third time last Thursday subsequently when Kuwait supported OPEC in its output reductions. This is an effort to cut brimming supply worldwide.
Brent crude oil was higher by 1 percent or 53 cents at $52.95 per barrel. Meanwhile U.S. crude oil touches its best closing level in three weeks by settling higher about 1.7 percent or 84 cents at $50.35 per barrel.
Essam al-Marzouq, oil minister from Kuwait, says his country was one out of many nations backing the extension of the deal between global exporters and the Organization of the Petroleum Exporting Countries, according to state agency KUNA report.
The bouncing back has restored some positivity after three weeks where analysts assertively trimmed long positions following weeks of unexpectedly higher inventory data. U.S. crude and Brent crude were both touched their highest level since March 9.
During the first six months this year, OPEC has agreed to cut its oil production by 1.2 million barrels per day and outputs have plunged for three months straight. As of today, most OPEC producers have been complying with the deal along with 95 percent of their assurance, including Russia gently curbing production. The country has already reduced 200,000 bpd out of its promised 300,000 bpd this month in accordance with the negotiation.
U.S. crude stocks added 867,000 barrels in the previous week. Glut concerns still hang over the market as OPEC grabs to constrict the oil market considering inventories around the world are close to their record highs.
Despite the resistance by Native Americans and environmental groups, there will be a start-up of 500,000 bpd crude pipeline in North Dakota this April.