Oil prices were flat Thursday after supporters of President Donald Trump stormed the U.S. Capitol, with investors focusing on the likelihood of a supply crunch after Saudi Arabia unilaterally agreed to cut production .
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Brent rose 8 cents to $ 54.38 a barrel at 0125 GMT, after rising 1.3% overnight. The US West Texas Intermediate (WTI) gained 11 cents to $ 50.74, after slipping earlier in the Asian session. The contract rose 1.4% on Wednesday.
Saudi Arabia, the world’s largest oil exporter, has said it will voluntarily reduce one million barrels per day (b / d) of production in February and March, after OPEC +, which brings together the Organization of the Countries oil exporters and other producers, including Russia, met earlier this week.
WTI crude looks set to rise as the Biden administration clamps down on U.S. crude production, the Saudis have tentatively eased oversupply concerns with their 1 million bpd cut, and as the days of the dollar seem numbered, “said Edward Moya, senior market analyst at OANDA.
FUTURE STOCK ON CAPITOL HILL LOCKDOWN, DC CURFEW TAKES EFFECT
A lower dollar makes oil cheaper because the commodity is primarily traded using the greenback.
US crude inventories fell and fuel inventories rose, the Energy Information Administration said on Wednesday.
Crude inventories fell 8 million barrels in the week of Jan. 1 to 485.5 million barrels, against a Reuters poll showing analysts were expecting a decline of 2.1 million barrels.
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Falling crude inventories are a typical year-end event as energy companies remove oil from storage to avoid tax bills.
Trump supporters stormed the U.S. Capitol on Wednesday, sending it on lockdown, as Vice President Mike Pence turned down a request by the president to undo his defeat to Democrat Joe Biden before police declared that the situation was secure and that the certification of the election results resumed.
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(Reporting by Aaron Sheldrick; Editing by Jacqueline Wong)