Oil prices rose in early Asian trade on Tuesday as concerns that six-week market recovery has gone beyond the fundamental of oversupply start to take hold.
Saudi Arabia kept its crude oil production steady in February at just above 10 million barrels per day, suggesting the country is keeping to a preliminary deal with other producers to freeze output.
US crude futures were 17 cents higher at 37.35 a barrel at 0054 GMT, they settled down 3.4 per cent at $37.18 per barrel.
Brent was also 17 cents higher at $30.70 after finishing $39.53 in the previous session.
Saudi Arabia and non-OPEC member, Russia, the world’s two largest oil exporters, along with Qatar and Venezuela said last month they would freeze output at January levels to prop up prices if other oil-producing nations agreed to join the first global oil pact in 15 years.
But with US crude stockpiles continuing to build and Iran showing little interest in joining major producers in freezing production, oil prices may have gained too much too soon.
Crude inventories across the US Is likely hit record highs for a fifth straight week last week, rising 3.3 million barrels, a media poll of analysts said.
Reuters/NAN.
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