Oil prices rise as producers commit to output restraint

TOKYO, Feb 2 (Reuters) - Oil prices rose around 1% on
Tuesday after major producers showed they were cutting crude
output in line with their commitments on restraint, supporting a
market thrown out of kilter by weak demand during the
coronavirus pandemic.
Brent crude LCOc1 was up 51 cents, or 0.9%, at $56.86 a
barrel by 0134 GMT, while U.S. oil CLc1 gained 53 cents, or
1%, to $54.08 a barrel. Both contracts rose more than 2% in the
previous session.
OPEC crude production increased for a seventh month in
January, a Reuters survey found, after the group and its allies
agreed to ease supply curbs further, but the growth was smaller
than expected.
The Organization of the Petroleum Exporting Countries was
pumping 25.75 million barrels per day (bpd) in January, the
survey found, up 160,000 bpd from December. 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.
"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," said Stephen Innes, global markets
strategist at axi.
"Having OPEC+ singing from the same hymn page is music to
every oil trader's ears," he added.
Russian oil and gas condensate output rose by 120,000
barrels per day (bpd) to 10.16 million bpd in January from
December, following the agreement on production restraint, two
sources familiar with the data told Reuters on Monday.
Kazakhstan cut its oil production by 2% in January from the
previous month due to power outages, which also improved its
compliance with the OPEC+ deal, two industry sources familiar
with the matter said and Reuters calculations showed on Monday.
Helping to support prices, a severe blizzard hitting a large
area of the northeastern United States is pushing up demand for
heating fuel.