Oil prices hike due to OPEC supply possibility cuts

Oil prices increased in early Asian trade on Thursday. This came after Saudi Arabia suggested that OPEC could consider cutting output, though bearish economic signals from central bankers and falling equities weighed.

U.S. crude futures hiked 34 cents to $95.23 a barrel by 0016 GMT, while Brent crude futures increased 51 cents, or $101.73 a barrel.

crude oil benchmark contracts reached three-week in high level on Wednesday after the Saudi energy minister flagged the possibility of cutting production.

Any cuts by the producer group and its allies, known collectively as OPEC+, are likely to coincide with a return of Iranian oil to the market should Tehran secure a nuclear deal with world powers, according to a report of OPEC sources to Reuters.

Iran stated that it had received a response from USA to the EU’s final text for resumption of Tehran’s 2015 nuclear agreement with major powers.

U.S. government data showed lacklustre demand for gasoline on Wednesday, which shows a notable slowdown in economic activity.