Brent oil Prices inched higher in the previous trading session and is expected to rise for five out of seven sessions while the global supply glut seems to dissipate, but the rising U.S. production has limited gains.
The Brent Crude was up by 0.04 percent and was traded at $56.01 per barrel, while U.S. West Texas Intermediate remained unmoved at the $53.99 per barrel.
Oil prices fell in the last trading session after the U.S. Energy Information Administration data showed U.S. crude inventories rose for seven consecutive weeks. But the market has been pushed supported within a tight $4 to $5 range since November, when the Organization of the Petroleum Exporting Countries (OPEC) and other producers like Russia agreed to cut production.
The Australia and New Zealand Banking group stated that “EIA data showed stocks rose 564,000 barrels to 518.7 million last week, however, it was the lowest increase over the past couple of months. If this trend of lower imports and smaller gains in inventories persists over the coming weeks, it would suggest that the OPEC led production cuts are starting to have an impact.”
OPEC’s record compliance with the deal has surprised the market, and the United Arab Emirates and Iraq was the biggest, have pledged to reach their targets. The international Energy Agency put OPEC’s compliance with a record90% in January, and based on a Reuters average of production surveys, it stands at 88 percent.