(MENAFN- Baystreet.ca) Oil prices rose on Wednesday, after Saudi Arabia said it would cut crude exports and deliver an even deeper cut to its production.
Crude futures pared gains after U.S. government data showed a rise in the nation's crude and fuel stockpiles, contradicting an earlier industry report indicating oil inventories declined.
Brent crude futures rose 98 cents, or 1.6%, to $63.40 U.S. a barrel late Wednesday morning. U.S. West Texas Intermediate crude oil futures were up 94 cents, or 1.8%, at $54.04 a barrel.
The Organization of the Petroleum Exporting Countries said on Tuesday that it had cut its output by almost 800,000 barrels per day (bpd) in January to 30.81 million bpd. Saudi Arabia is responsible for most of that reduction.
On Tuesday, Saudi Energy minister Khalid al-Falih told the Financial Times production would fall below 10 million bpd in March, more than half a million bpd below the target it agreed to.
The Energy Information Administration reported that U.S. crude stockpiles climbed by 3.6 million barrels in the week through Feb. 8, compared with analysts' expectations for an increase of 2.7 million barrel.
The EIA added that offsetting the headline increase, crude stocks at the delivery hub in Cushing, Oklahoma where WTI is priced fell by 1.016 million barrels.
Gasoline stocks rose by 408,000 barrels, compared with analysts' expectations for a 826,000-barrel gain. Distillate stockpiles, which include diesel and heating oil, rose unexpectedly by 1.2 million barrels, versus expectations for a 1.1 million-barrel drop, the EIA data showed.
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