OPEC oil price rises as producers pledge to output cuts

The price of OPEC basket of thirteen crudes stood at 49.87 US dollars a barrel on Thursday, compared with 49.43 US dollars a barrel on Wednesday, according to OPEC Secretariat calculations.

Oil prices rose on Thursday in a volatile session on growing signs that key oil producers will adhere to production cuts at next week's OPEC meeting amidst a persistent global glut, as reported by CNBC.

The Organization of the Petroleum Exporting Countries (OPEC) and other producers including Russia pledged to cut output by almost 1.8 million barrels per day (bpd) in the first half of 2016, a deal likely to be extended until the end of March 2018.

Leaders from OPEC and other producers are to meet in Vienna on May 25 to decide on output policy. The group is expected to prolong its agreement to limit production for up to nine months.

Russia's largest oil producer Rosneft will meet its agreements with OPEC on oil output reductions, Igor Sechin, Rosneft chief executive, told reporters in Berlin on Thursday.

The price also rose on Wednesday after news of a drawdown in US crude inventories and a dip in US output.

The U.S. Energy Information Administration said inventories fell 1.8 million barrels in the week to May 12 to 520.8 million barrels.

The OPEC Reference Basket of Crudes (ORB) is made up of the following: Saharan Blend (Algeria), Girassol (Angola), Oriente (Ecuador), Rabi Light (Gabon), Iran Heavy (Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela).

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