Oil prices rise on falling US crude stocks, Saudi supply cut to Asia
Oil prices rose on Thursday, and Brent was firmly back over $50 per barrel, as a fall in U.S. crude inventories and a more severe than expected cut in Saudi supplies to Asia tightened the market.
Brent crude futures LCOc1 , the international benchmark for oil prices, were at $50.33 per barrel at 0039 GMT on Thursday, up 11 cents, or 0.2 percent, from their last close.
U.S. West Texas Intermediate (WTI) crude oil futures CLc1 were trading at $47.46 per barrel, up 13 cents, or 0.3 percent from the last settlement.
The Organization of the Petroleum Exporting Countries (OPEC) and other producers including Russia have pledged to cut output by almost 1.8 million barrels per day (bpd) during the first half of the year.
So far, however, there have been few signs that global markets are actually tightening as producers shielded their biggest customers, especially in Asia, from the cuts.
But after Brent prices fell back below $50 per barrel last week, analysts said producers felt forced to act.
Crude inventories USOILC=ECI fell 5.2 million barrels in the week to May 5, the U.S. Energy Information Administration said. At 522.5 million barrels, crude stocks were the lowest since February.
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