01 February 2017, Lagos – Oil steadied on Wednesday as Russia joined OPEC in cutting production to balance the market, although large supply in places such as the United States dragged on prices.
The Organisation of the Petroleum Exporting Countries is an intergovernmental organisation of oil-exporting developing nations that aims to ensure stable oil prices within global oil markets.
Brent crude futures LCOC1, the international benchmark for oil prices, were trading at 55.63 dollars per barrel at 0749 GMT (02:49 a.m. ET), up 5 cents from their last close.
US West Texas Intermediate (WTI) crude futures CLc1 rose 5 cents to 52.86 dollars a barrel.
Prices reversed earlier falls after reports that Russia cut its oil and gas condensate production by around 100,000 barrels per day (bpd) between December and January, down to 11.11 million bpd.
Russia’s cuts are part of an effort led by the OPEC, of which Russia is not a member, to prop up the market and end a global fuel supply glut.
As part of this, OPEC has said it will cut production by around 1.2 million barrels per day (bpd) in the first half of 2017.
Other producers, including Russia, have pledged to cut another 600,000 bpd in output.