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Oil prices rose on Wednesday as lower supply as a result of production cuts by Saudi Arabia and Russia offset concerns about slowing demand from China, the world’s largest crude importer, and a report showing an increase in US crude inventories.
And state media reported that the Saudi cabinet confirmed on Tuesday its support for the precautionary measures taken by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC +, to stabilize the market.
Brent crude futures rose 22 cents, or 0.3 percent, to $86.39 a barrel by 0806 GMT.
US West Texas Intermediate crude rose 19 cents, or 0.2 percent, to $83.11 a barrel.
Both contracts had increased by nearly a dollar in the previous session.
Crude oil gained for the sixth consecutive week last week and reached its highest level since mid-April on Monday, supported by declining OPEC + supplies and hopes that stimulus will boost oil demand recovery in China.
Some downward pressure came from the American Petroleum Institute’s data on Tuesday, which, according to market sources, showed that US crude inventories rose by 4.1 million barrels last week, despite the drop in gasoline and distillate inventories.
