Oil climbs as supply glut in focus amid U.S. Capitol attack

Oil prices climbed on Thursday as Saudi Arabia, the world’s biggest oil exporter, agreed to slash production in the next two months and as U.S. crude inventories dropped.

Brent crude rose 0.7%, or 40 cents, at $54.70 per barrel following a 1.3% gain overnight. U.S. West Texas Intermediate rose 0.9%, or 43 cents, at $51.06 per barrel. The benchmark gained 1.4% on Wednesday. 

Saudi Arabia agreed to voluntarily slash 1 million bpd of output in February and March at the OPEC+ meeting earlier this week.

A weaker dollar, from which oil is priced in trading, also supported prices. U.S. crude inventories fell and fuel stockpile grew, according to the Energy Information Administration.

Crude stocks fell 8 million barrels to 485.5 million barrels in the week ended Jan. 1, contrary to analysts’ expectations for a 2.1-million-barrel drawdown.

On Wednesday, Trump supporters stormed the U.S. Capitol, prompting a lockdown. This happened after Vice President Mike Pence refused Trump’s demand to cancel his loss to President-elect Joe Biden.