SEOUL Jan 3 U.S. oil prices rose in the first
trading hours of 2017 on Tuesday, buoyed by a deal for OPEC and
non-OPEC production cuts which kicked off on Sunday.
U.S. benchmark West Texas Intermediate (WTI) crude
oil prices were up 35 cents, or 0.7 percent, at $54.07 at 0010
GMT, not far from last year's high of $54.51 reached on Dec. 12.
International Brent crude oil was yet to trade after
closing up 68 cents at $56.82 per barrel on Friday. Oil markets
were closed on Monday after New Year's holiday.
Jan. 1 marked the official start of the deal agreed by the
Organization of Petroleum Exporting Countries (OPEC) and
non-OPEC member countries such as Russia in November last year
to reduce output by almost 1.8 million barrels per day.
January will serve as an indicator for whether the agreement
Libya, one of two OPEC member countries exempt from the
deal, increased its production to 685,000 barrels per day (bpd)
as of Sunday, up from around 600,000 a day in December,
according to an official from the National Oil Corporation
Among OPEC member countries, Oman notified its customers
last week that it will cut its crude term allocation volumes by
5 percent in March.
Non-OPEC member Russia's oil production in December remained
unchanged at 11.21 million bpd, but it was preparing to cut
output by 300,000 bpd in the first half of 2017 as part of its
efforts to join the global deal to reduce oversupply and
rebalance the market.
(Reporting by Jane Chung; Editing by Richard Pullin)