Oil steadies as production cuts offset demand fears

29.01.2021 - Petr Mazaylo
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. 

Risk disclaimer "PROMETHEUS LTD – Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Republic of the Marshall Islands MH96960 is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0155 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of PROMETHEUS LTD and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from umarkets.net or PROMETHEUS LTD." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue
×

Help with deposit?