The United States Oil Fund (NYSEArca: USO), which tracks West Texas Intermediate crude oil futures, and the United States Brent Oil Fund (NYSEArca: BNO), which tracks Brent crude oil futures, each rose about 1.5% on Thursday as oil got some assistance from multiple corners.
Predictably, that includes the Organization of Petroleum Exporting Countries (OPEC). Previously, OPEC said it plans to diminish output to a range of 32.5 to 33.0 million barrels per day from its current estimated output of 33.24 million barrels per day. While Saudi Arabia, OPEC’s biggest producer, has agreed to reduce output, Iran, Libya and Nigeria might not follow suit.
It appears Saudi Arabia is making good on that pledge.
“Saudi Energy Minister Khalid al-Falih said the kingdom had cut production to its lowest in almost two years,” reports Reuters. “Several OPEC members, including Iraq and Kuwait, said they were implementing the deal and OPEC Secretary-General Mohammed Barkindo said the group expects global oil inventories to fall by the second quarter.”