Oil widens gains after Saudi energy minister's remarks

Oil prices widened their gains in European trade on Tuesday, with US crude up from four-week lows, while Brent is trading above $62, due to OPEC output cuts, in addition to US sanctions on Venezuela, and following Saudi oil minister's remarks. 

As of 12:25 GMT, US crude rose to $53.40 a barrel from the opening of $52.41, while Brent rose to $62.85 a barrel. 

US crude lost 0.5% yesterday, the second loss in three days, marking four-week lows at $51.23 a barrel, amid increased US drilling activity, while Brent declined 0.8%. 

Oil prices are boosted by ongoing output restrictions set forth by OPEC and Russia to cut production by 1.2 million bpd until late June. 

OPEC President Suhail Al Mazroui asserted the importance of reaching balance in the oil market by the end of the current quarter, adding he expects oil prices to steady as well in this quarter. 

Otherwise, Venezuelan output was forced down by recent US sanctions and amid tensions and political turmoil following recent elections, with even more output drops expected soon. 

Saudi oil minister Khalid Al Falih said to Financial Times that Saudi Arabia plans to produce 9.8 million bpd in March, and for exports to fall to 6.9 million bpd. 

That means a 500 thousand bpd cut from the levels promised by Saudi Arabia in the deal to cut global output with OPEC.