Oil gets a boost from Saudi output pledge, declining U.S. inventories

LONDON (Reuters) – Brent oil prices rose on Wednesday, after top exporter Saudi Arabia said it would cut crude exports and deliver an even deeper cut to its production, while U.S. futures gained on a decline in domestic oil inventories.

Brent crude futures rose 88 cents to $63.30 a barrel by 0950 GMT, while U.S. crude oil futures gained 66 cents to trade at $53.76 a barrel.

The Organization of the Petroleum Exporting Countries (OPEC) said on Tuesday that it had cut its output by almost 800,000 bpd in January to 30.81 million bpd.

Most of that reduction has been thanks to Saudi Arabia. Energy minister Khalid al-Falih on Tuesday 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 as part of a global deal to limit supply.