Oil prices edged up on Tuesday, lifted by statements that Saudi Arabia was making significant supply cuts, although rising U.S. output meant that markets remain well supplied.
Brent crude futures were at $48.52 per barrel at 0510 GMT, up 23 cents, or 0.5 percent, from their last close.
U.S. West Texas Intermediate (WTI) crude futures were at $46.27 per barrel, up 19 cents, or 0.4 percent.
Saudi Arabia, the world’s top oil exporter, is leading an effort by the Organization of the Petroleum Exporting Countries (OPEC) to cut production by almost 1.8 million barrels per day (bpd) until the end of the first quarter of 2018 in order to prop up prices. Other countries, including top producer Russia, are also participating.
“Oil attempted to rally… as Saudi Arabia announced cuts to shipments to the United States and Asia,” said Jeffrey Halley, senior market analyst at futures brokerage OANDA in Singapore.