Brent Oil Rises To Highest Since February After Saudi Arabia Output Reduce

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TOKYO: Brent oil costs rose on Wednesday to the very best since February after Saudi Arabia agreed to expand cuts in output than anticipated throughout a gathering with allied producers, whereas business information confirmed U.S. crude stockpiles fell final week.

Brent crude rose as a lot as 0.6% to $53.94 a barrel, the very best since Feb. 26, 2020. It was at $53.79 a barrel at 0147 GMT and gained 4.9% on Tuesday.

U.S. West Texas Intermediate (WTI) futures gained 13 cents, or 0.26%, to $50.06 a barrel. The contract on Tuesday closed up 4.6% at $49.93, its highest since Feb. 24, 2020.

Saudi Arabia, the world’s greatest oil exporter, agreed on Tuesday to make further, voluntary oil output cuts of 1 million barrels per day (bpd) in February and March, after a gathering with the Group of the Petroleum Exporting International locations (OPEC) and different main producers that kind the group often called OPEC+.

The reductions agreed by Saudi Arabia had been included in a deal to influence different producers within the OPEC+ group to carry output regular.

With coronavirus infections spreading quickly in lots of elements of the world producers are attempting to help costs as demand takes successful from new lockdowns being put in place.

“The choice got here as an enormous shock because the organisation struggled yesterday to comply with a deal,” Capital Economics stated in a word.

It “provides weight to our view that the oil market can be in a deficit … which can assist carry the worth of Brent to $60 per barrel by end-year,” it stated.

OPEC member Iran’s seizure of a South Korean tanker within the Gulf additionally supported costs on Wednesday.

Tehran denied it was holding the ship and its crew as hostages, a day after it seized the tanker whereas pushing for Seoul to launch $7 billion of funds frozen beneath U.S. sanctions.

U.S. crude oil inventories dropped by 1.7 million barrels within the week to Jan. 1 to 491.three million barrels, information from business group the American Petroleum Institute confirmed late on Tuesday.

Disclaimer: This publish has been auto-published from an company feed with none modifications to the textual content and has not been reviewed by an editor



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