Oil prices gain due to Saudi Arabia’s pledge

Gulf Today Report

Oil prices record almost 11-month highs on Friday and it is likely heading for another weekly gain as Saudi Arabia plan on cutting output.

Brent crude climbed 13 cents or 0.2%, to $54.51 a barrel while US West Texas Intermediate (WTI) gained 14 cents, or 0.3%, to $50.97.

Hitoyuki Kikukawa, general manager of research at Nissan Securities said: "Saudi's decision to make voluntary cuts to its output continued to provide support." 

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Earlier in the week, Saudi Arabia decided to reduce oil output by 1 million barrels per day in February and March.

"Oil markets are expected to stay in a bullish tone toward February on the back of Saudi's surprise promise to cut production," said Kazuhiko Saito, chief analyst at commodities broker Fujitomi Co.