TOKYO (Reuters) – Oil prices were steady Thursday after supporters of President Donald Trump stormed the U.S. Capitol, with investors focusing on the appearance of tighter supply after Saudi Arabia agreed to one-sided to cut product.
Brent crude went up 8 cents at $ 54.38 a barrel before 0125 GMT, after gaining 1.3% overnight. US West Texas Intermediate (WTI) gained 11 cents to $ 50.74, after slipping earlier in the Asian session. The contract rose 1.4% on Wednesday.
Saudi Arabia, the world’s largest oil exporter, said it would voluntarily cut one million barrels per day (bpd) of production in February and March, following OPEC +, which gathering of the Organization of Petroleum Exporting Countries and other producers, including Russia. this week.
“WTI crude is likely to rise higher as the Biden administration slows down U.S. crude production, the Saudis have inevitably reduced concerns with their 1-million bpd cut, and because dollar days seem to be numbered, ”said Edward Moya, senior market. analyst at OANDA.
A lower dollar makes oil cheaper because the commodity is traded mostly using the green.
U.S. crude stocks fell and fuel deposits rose, the Energy Information Administration said Wednesday.
Crude deposits went down 8 million barrels a week to January 1 to 485.5 million barrels, against a Reuters poll showing analysts expected a 2.1 million-barrel barrel decline.
The decline in crude stocks is typical at the end of the year as energy companies take oil out of storage to avoid tax bills.
Trump supporters entered the U.S. Capitol Wednesday, sending him to a lockout, as Vice President Mike Pence rejected a request from the president to postpone his loss to Democrat Joe Biden before declaring police that the situation was secure and that confirmation of the outcome of the election had been resumed.
Reporting by Aaron Sheldrick; Edited by Jacqueline Wong