Oil prices edged higher on Wednesday as Saudi Arabia’s surprise weekend pledge to deepen output cuts outweighed weak Chinese export data and rising U.S. fuel stocks.
Brent crude futures were up 31 cents, or 0.4%, at $76.60 a barrel at 1338 GMT, while U.S. West Texas Intermediate crude futures gained 40 cents, or 0.6%, to $72.14.
Both benchmarks jumped more than $1 on Monday after Saudi Arabia’s decision over the weekend to reduce output by 1 million barrels per day (bpd) to 9 million bpd in July.
“As things stand, the oil market is on the cusp of a massive shortfall,” said PVM Oil’s Stephen Brennock.
