U.S. West Texas Intermediate crude oil futures continued to move higher on Friday with last February’s high at $53.60 well within reach. Investors continue to look beyond rising coronavirus cases, instead choosing to focus on the prospect of lower supply after Saudi Arabia pledged to cut output in February and March. Also underpinning the crude oil market is this week’s reported drawdown in U.S. crude stockpiles although one could argue that a spike in gasoline supply may have been offsetting news.
“The surprise Saudi cut is keeping bulls at the helm of the energy complex,” said Stephen Brennock of oil broker PVM. “It will take a brave man to bet against the current bullish run of play.”
Oil Prices Underpinned After Saudi Arabia Announces Voluntary Production Cut
Oil prices continue to rise in response to Saudi Arabia’s decision to make a big voluntary production cut.
Saudi Arabia, the world’s biggest oil exporter, said earlier in the week it would make additional, voluntary oil output cuts of 1 million barrels per day (bpd) in February and March, after a meeting of OPEC+, which groups the Organization of the Petroleum Exporting Countries and other producers, including Russia.
OPEC+ agreed most producers would hold output steady in February and March while allowing Russia and Kazakhstan to raise output by a modest 75,000 bpd in February and a further 75,000 bpd in March.
US Energy Information…