OPEC production cuts raises Brent crude oil prices to $67.50 per barrel

The production cuts by the Organization of Petroleum Exporting Countries (OPEC) and non-OPEC countries, in addition to a slight fall in U.S. production led to rise oil prices for a fourth session on Tuesday to near a three-week high hit a day earlier.

Statistics made available shows that U.S. West Texas Intermediate crude for April delivery was up 10 cents at $64.01 a barrel even as the contract hit $64.24 on Monday, its highest since February 6.

London Brent crude had yet to start trading after settling up 19 cents at $67.50.

Saudi Arabian oil minister Khalid al-Falih had indicated on Saturday that its crude production would be well below the production cap as the Organization of the Petroleum Exporting Countries and its allies were committed to reducing output to bring balance and stability to the market.

Prices were also supported by U.S. Energy Information Administration data on Thursday that showed domestic oil production dipped to 10.27 million barrels per day from 10.271 million bpd the week before.

U.S. crude inventories are forecast to have risen by 2.7 million barrels last week, a preliminary Reuters poll showed on Monday. [EIA/S]

Gasoline stocks are seen down by 600,000 barrels, while distillate inventories, which include heating oil and diesel fuel, were seen down 700,000 barrels. The American Petroleum Institute is scheduled to release its weekly data later in the day.