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Oil prices gain amid output cuts, U.S. inventory draw

NEW YORK
2021-02-05 04:42

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NEW YORK, Feb. 4 (Xinhua) -- Oil prices moved higher on Thursday, bolstered by signs of tightening supplies.

The West Texas Intermediate for March delivery added 54 cents to settle at 56.23 U.S. dollars a barrel on the New York Mercantile Exchange. Brent crude for April delivery increased 38 cents to close at 58.84 dollars a barrel on the London ICE Futures Exchange.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, widely known as OPEC+, agreed in January to keep most oil production curbs in place from February to the end of March.

Saudi Arabia, the world's biggest oil exporter, pledged a voluntary oil production cut of 1 million barrels per day beyond the required OPEC+ quotas in these two months.

"We believe OPEC+ remain in full control of the oil market," Giovanni Staunovo, analyst at UBS Global Wealth Management, said in a note Thursday.

"With the group endeavoring to keep global oil production below demand, we expect oil inventories to continue to fall this year," said Staunovo, adding "the rollout of vaccines should support global oil demand over the coming months and allow oil prices to rise further."

Meanwhile, U.S. crude oil inventories decreased by 1.0 million barrels during the week ending Jan. 29, the U.S. Energy Information Administration reported on Wednesday.
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