Upstream

Crude Oil prices rally as Saudi pledges output cut


Published: Saturday January 9, 2021
By: Oilfield Africa Review

Crude oil prices were observed in February climbed to almost a year high since same period in previous year. This positive crude market upthrust is not far from recent Saudi Arabia’s pledge to cut its crude production output in strengthening the global crude oil prices from sliding further. Saudi Arabia, the world’s biggest oil exporter, promised to cut output by an additional 1 million barrels per day (bpd) in February and March.

Brent Crude climbed 13 cents, or 0.2%, to $54.51 a barrel by 0531 GMT. It touched $54.90 on Thursday, the highest since February.

U.S West Texax Intermediate (WTI) gained 14 cents, or 0.3%, to $50.97. The contract closed up 0.4% on Thursday after also hitting its highest since February at $51.28.

Global crude oil market observers among who are Hiroyuki Kikukawa, general manager of research at Nissan Securities have reacted divergently to the prevailing crude oil prices.

 “Saudi’s decision to make voluntary cuts to its output continued to provide support,” said Hiroyuki Kikukawa, general manager of research at Nissan Securities.

“Strong global equities, backed by excessive liquidity, also prompted fresh buying in oil,” he added, but warned that oil and stock markets may see a correction soon as their rallies do not reflect the current state of fuel demand and the global economy.

 “Oil markets are expected to stay in a bullish tone toward February on the back of Saudi’s surprise promise to cut production,” said Kazuhiko Saito, chief analyst at commodities broker Fujitomi Co.

“But concerns over slower demand in gasoline and other fuels in the United States and other parts of the world due to wider restrictions to contain spreading COVID-19 pandemic may limit gains,” he added.

Sponsored Partners

Discover our premium partners and explore their innovative solutions in the industry

Conferences & Exhibitions
NAICE 2025: SPE Nigeria Council to Champion a Tech-Driven, Inclusive Energy Future
Friday July 18, 2025
Gas & Power
BASF, Equinor Sign Ten-Year Natural Gas Supply Agreement
Friday July 18, 2025
Egypt
New Fortress Energy Deploys Second FSRU to Egypt
Friday July 18, 2025
Carbon Capture
Kenyan Start-Up Aiming to Generate Carbon Credits from Thin Air
Friday July 18, 2025
Wind energy
bp to Sell US Onshore Wind Business to LS Power
Friday July 18, 2025
Conferences & Exhibitions
Renaissance Energy Africa Joins African Energy Week (AEW) as Silver Partner
Friday July 18, 2025
Pipeline
Strohm Completes Successful Field Trials for TCP Pipe Design
Wednesday July 16, 2025