Oil Prices Rise on Reports of Kuwait’s Deeper-than-Expected Production Cuts

Oil prices rose on Friday as sentiment was lifted by reports that Kuwait was cutting its production by more than initially anticipated beginning January as it fulfills its commitment to a coordinated effort by crude producers to curb a global oil glut.

International Brent crude oil futures traded up 20 cents or 0.37% from their last close at $54.22 per barrel. U.S. WTI crude futures also rose 24 cents or 0.47%, trading at $51.14 per barrel.

Prices edged up after OPEC member Kuwait told its customers that it will reduce its supply starting January as part of its commitment to a deal between OPEC and other producers to lower output by around 1.8 million bpd to help rebalance the oil markets.

Kuwait Petroleum Corporation stated that it has told its customers that it will cap its production in accordance with the OPEC deal. Traders observed that prices rose as KPC indicated that it was cutting supplies more than previously anticipated and beyond the operational capacity

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