02.02.201803:07:00UTC+00Oil Extends Rally on Strong Compliance with OPEC-led Production Cuts

Oil prices edged up for the third day after a survey revealed excellent compliance with production cuts by OPEC and other producer countries including Russia, easing worries regarding a rising U.S. production.

The international benchmark, Brent futures, traded up 24 cents or 0.3 percent at $69.89 a barrel. U.S. WTI crude stood at $66.13 per barrel, 33 cents or 0.5 percent up from their last settlement.

Output by the OPEC edged up in January down from an eight-month low as higher production from Nigeria and Saudi Arabia countered a further drop in Venezuela and solid compliance with a supply restriction agreement.

The cartel produced 32.4 million bpd in January, according to a Reuters survey, 100, 000 bpd higher compared to December. The prior month's total output was revised down by 110, 000 bpd to the lowest level since April 2017.

Despite this, compliance by producers participating in the deal to lower supply increased to 138 percent from 137 percent in December, according to the survey, indicating commitment is not weakening even as oil prices hit their highest level since 2014.