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Oil prices were stable on Thursday after supporters of President Donald Trump stormed the US Capitol, with investors focusing on the likelihood of tighter supplies after Saudi Arabia unilaterally agreed to reduce production.
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Brent crude rose 8 cents to $ 54.38 a barrel at 0125 GMT, rising 1.3% overnight. U.S. West Texas Intermediate (WTI) rose 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, has said it will voluntarily cut one million barrels a day (bpd) of production in February and March, after OPEC +, the Organization of Petroleum Exporting Countries and other producers, including Russia, met earlier, meet this week.
“It looks like the WTI crude will rise higher as the government in Biden reduces U.S. crude production, and the Saudis have temporarily eased the oversupply with their 1 million bpd savings present, and as the dollar’s days seem numbered,” it says Edward Moya, senior market analyst at OANDA.
STOCK STOCK RISES ON CAPITOL HILL LOCKDOWN, DC CURFEW EFFECTS
A lower dollar makes oil cheaper because the commodity is mostly traded with the greenback.
U.S. crude shares have fallen and fuel supplies have risen, the Energy Information Administration said Wednesday.
Raw stocks declined by 8 million barrels during the week to 1 January to 485.5 million barrels, compared to a Reuters poll showing analysts had expected a 2.1 million barrel drop.
OIL TOPS $ 50 AS SAUDI ARABIA OPPSAP
The decline in crude inventories is typically at the end of the year, as energy companies extract oil from storage to avoid tax bills.
Trump supporters swarmed the U.S. Capitol on Wednesday and then closed it as Vice President Mike Pence refused a request from the president to cancel his loss to Democrat Joe Biden before police declare the situation safe and the certification of the election result is resumed.
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(Reporting by Aaron Sheldrick; Editing by Jacqueline Wong)