West Texas Intermediate (WTI) crude oil futures for delivery in February were up 0.6% at $54.10 per barrel during Friday’s pre-market trading session, while Brent crude futures for delivery in March were up 0.7%, at $57.30 per barrel.
Traders are bidding crude prices higher on the basis of reported production cuts by oil-titan Saudi Arabia, and signals the kingdom plans to cut shipments in January, said analysts. Saudi Arabia has cut oil output in January by 486,000 barrels per day to 10.1 million bpd, in compliance with an deal by the Organization of the Petroleum Exporting Countries (OPEC) and other producers to curb a global two-year supply glut.
Also, the U.S. Energy Information Administration Thursday said U.S. oil inventories were at 479 million barrels, a drawdown of 7.1 million barrels from its last reported figures a week earlier.
Oil traders continue to watch U.S. dollar, which is near 14-year highs but is trading softer pre-market. A stronger dollar tends to depress commodities prices, as expressed in greenbacks.
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