Oil steady after acquiring on Saudi output cuts

7

Oil prices were little changed on last weekday after gaining nearly 1 percent the day before on news that Saudi Arabia had cut production to meet OPEC’s agreement to lesser output.

Saudi Arabia has been curbing oil output in coming month by at least 486,000 barrels per day (bpd) to 10.058 million bpd, fully implementing OPEC’s agreement to reduce production, according to a Gulf source familiar with Saudi oil policy.

Pump jacks in an oil field over the Monterey Shale formation near Lost Hills, Calif.

Oil prices were little modified after gaining nearly 1 percent the day before on news that Saudi Arabia had cut production to meet OPEC’s agreement to reduce output.

Saudi Arabia has been curbing oil output in coming month by at least 486,000 barrels per day (bpd) to 10.058 million bpd, fully implementing OPEC’s agreement to slow production, according to a Gulf source known with Saudi oil policy.

NYMEX crude for delivery was down 7 cents at USD53.69 a barrel by 0016 GMT, after closing up 50 cents. For the week, the contract is likely to be largely steady.

London Brent crude for March delivery was yet to trade after settling up 43 cents at USD56.89 a barrel.

Prices had fallen earlier after data showed a surprisingly large increase in U.S. gasoline and distillate inventories.

U.S. crude stocks fall sharply to end the year, the Energy Information Administration said, with a draw of 7.1 million barrels, but stocks of gasoline and distillates surged as refiners ramped up production to reduce crude inventories, a year-end practice to avoid higher taxes.