Top oil exporter Saudi Arabia plans to lower its shipments further in February as it follows through on a global deal to cut output to prevent a build-up in supplies.
Saudi Energy Minister Khalid al-Falih told a news conference in Riyadh on Wednesday that the kingdom would export 7.1 million barrels per day in February, down from 7.2 million bpd in January, Euronews reported.
He also said Saudi Arabia was producing 10.20 million bpd, delivering on an earlier pledge to cut output further than required by a supply-limiting deal between the Organization of the Petroleum Exporting Countries and allies such as Russia.
Saudi Arabia had a target to lower output to 10.311 million bpd as of Jan. 1, when the supply cut accord took effect.
Oil prices were on track for solid weekly gains on Friday after financial markets were lifted by hopes the United States and China may soon resolve their trade disputes, and as OPEC-led crude output cuts tightened supply.
Despite this, markets were held in check by expectations of an economic slowdown in 2019, CNBC reported.
International Brent crude futures were at $61.62 per barrel, down 6 cents, or 0.1%, from their last close.
US West Texas Intermediate crude futures were 4 cents above their last settlement, at $52.63 per barrel.
Brent and WTI are set for their second week of gains, rising nearly 8% and 10% respectively.
Markets were being supported by hopes that the trade war between Washington and Beijing may be resolved soon after officials said three-day talks this week concluded constructively and that further negotiations would likely follow this month.
“Sentiment is greatly improved, and trade talk optimism has helped boost risk-appetite across the week,” said Jasper Lawler, head of research at London Capital Group in a note on Friday, although he added that at this stage “there is a lack of anything concrete between the US and China”.
Lower oil exports from Iran since last November, when US sanctions against it resumed, have also supported crude.
Despite this, concerns over the health of the global economy lingered on, with signs mounting that China’s growth in 2018 and 2019 would be the lowest since 1990.
