OIL prices extended gains to hit their highest level in nearly three weeks yesterday, supported by comments from Saudi Arabia that it would continue to curb exports in line with the OPEC-led effort to cut global supplies.

U.S. West Texas Intermediate crude for April delivery was up 20 cents, or 0.3 percent, at US$63.75 a barrel after rising 3 percent last week.

Both benchmarks earlier hit their highest since Feb. 7.

“The rise in equities made it easier to buy risk assets such as oil,” said Tomomichi Akuta, senior economist at Mitsubishi UFJ Research and Consulting in Tokyo.

“But amid worries over U.S. crude production at near record highs, oil is struggling to make a move.”

Prices were supported after Saudi Arabian oil minister Khalid al-Falih said Saturday the country’s crude production in January-March would be well below output caps, with exports averaging below 7 million barrels per day.

Saudi Arabia hopes OPEC and its allies will be able to relax production curbs next year and create a permanent framework to stabilize oil markets after the current supply cut deal ends this year, Falih added.

“A study is taking place and once we know exactly what balancing the market will entail we will announce what is the next step. The next step may be easing of the production constraints,” he said.

“My estimation is that it will happen sometime in 2019.”

U.S. energy companies last week added one oil rig, the fifth weekly increase in a row, bringing the total count up to 799, the highest level since April 2015, Baker Hughes energy services firm said Friday. (SD-Agencies)