Oil prices jump as producers cut output

Gulf Today Report 

Oil prices advanced up to 1% on Tuesday following major producers decisions to cut crude output to support the market suffering from low demand.

Brent crude was up 51 cents, or 0.9%, at $56.86 a barrel while US oil gained 53 cents, or 1%, to $54.08 a barrel.

According to data, OPEC crude production rose for a seventh month in January after an agreement to reduce supply curbs, although the growth was less than expected. 

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Russian output increased in January but in line with the agreement on reducing production, while in Kazakhstan oil volume fell for the month. Both countries are members of the OPEC+ grouping that banded together to help support prices with production cuts.

According to Stephen Innes, global market strategist at Axi, "the critical take away from yesterday's oil market recovery rally is that OPEC+ members seem to be taking their commitment to output cuts to the heart."

An unfortunate case of a severe blizzard hitting the northeastern United States has supported prices, increasing demand for heating fuel.