From Gina Lee
Investing.com – Oil rose in Asia Thursday morning and stabilized as focus shifted from chaos in Washington DC to the likelihood of tighter fuel supplies after Saudi Arabia decided to cut production.
rose 0.74% to $ 54.70 by 10:54 p.m. ET (3:54 a.m. GMT) after gaining 1.3% in the previous session. gained 0.85% to $ 51.06 and regained some losses from earlier in the session.
Saudi Arabia surprised the market with its unilateral commitment to produce one million barrels a day (bpd) in February and March. The announcement came after the Organization of Petroleum Exporting Countries and Allies (OPEC +) concluded its joint ministerial oversight committee and the 13th OPEC and non-OPEC ministerial meeting earlier this week.
In the US, supporters of US President Donald Trump flocked to Capitol Hill, where lawmakers met to confirm President-elect Joe Biden's victory in the November 3 presidential election. The suspended meeting resumed when the legislature was led back into the building.
Some investors remained optimistic about the outlook for WTI futures.
"WTI futures appear higher as the Biden government cuts US crude oil production. The Saudis have cut oversupply concerns for the time being with their cut of a million bpd and the days seem numbered," said Edward Moya, Senior Market Analyst at OANDA Reuters.
The black liquid is mainly trading on the greenback, which fell Thursday morning.
Meanwhile, the earlier release has also boosted the mood. The 8.010 million barrel draw in the last week of 2020 was larger than the 2.133 million barrel draw in Investing.com's forecasts and the 6.065 million barrel draw in the previous week.
The draw published on Tuesday resulted in a draw of 1.663 million barrels.
However, the decline in crude oil inventories usually occurs at the end of each year as energy companies take oil out of storage to avoid tax burdens.
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