Oil steadies as production cuts offset demand fears

Oil prices steadied on Friday, stuck in ranges for the past three weeks, as traders looked for hints of shifting demand and supply fundamentals.

A decrease in Saudi’s oil supply and lower U.S. crude inventories offset price pressures from fuel demand. 

Brent crude futures for March delivery gained 0.1%, or 4 cents, at $55.57 per barrel, following a 0.5% drop in the last session. 

The Brent March delivery is set to expire on Friday, while the more active April contract climbed 0.2%, or 13 cents, at $55.23 per barrel.

U.S. West Texas Intermediate crude futures dropped 7 cents to $52.27 per barrel, following a 1% fall on Thursday.

Saudi pledged to cut production by 1 million bpd in February and March, while OPEC+ compliance to agreed output cuts improved in January.

Also supporting prices are a 9.9-million barrel decline in U.S. oil stocks last week and forecast for a fall in U.S. oil production in February.