Oil prices traded higher as Saudi Arabia reaffirmed its commitment to reduce production in accordance with the Organization of the Petroleum Exporting Countries' (OPEC) decision to cut oil output.

The fall in US dollar has also facilitated oil price growth.

Brent crude futures gained 66 cents to reach $56.52 per barrel while US West Texas Intermediate (WTI) crude futures improved by 78 cents to touch $53.15 a barrel, reported Reuters.

"The market genuinely seems quite happy here."

Saudi Arabia, one of the OPEC countries, said that it will maintain its commitment to reduce oil production. Earlier, non-OPEC nation Russia also expressed intentions to adhere to the oil output cut.

Freight Investor Services broker in Dubai Matt Stanley was quoted by the news agency as saying: “The market genuinely seems quite happy here (around $55)… but people are watching with caution as the slightest hint of this OPEC/non-OPEC agreement going wrong is going to drive the market down.”

Investors are also closely monitoring the change in US inventory and output, an important factor that influences oil price.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Image: An offshore platform. Photo: courtesy of FreeImages/ QR9iudjz0.