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.
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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.
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.
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By GlobalDataImage: An offshore platform. Photo: courtesy of FreeImages/ QR9iudjz0.
