Oil rises to 10-month high after #Saudi output cut, U.S. inventory draw | Reuters

Oil rises to 10-month high after Saudi output cut, U.S. inventory draw | Reuters

Oil prices rose to their highest levels since February on Wednesday after Saudi Arabia announced a big voluntary production cut and on a steep fall in U.S. crude inventories.

Futures contracts pared gains in thin post-settlement trade after protesters stormed the U.S. Capitol building in an attempt to thwart the certification of Donald Trump’s loss in November’s U.S. presidential election.

Brent crude settled up 70 cents, or 1.3%, at $54.30 a barrel. Earlier in the session, it hit a high of $54.73 a barrel, a level not seen since Feb. 26, 2020.

U.S. West Texas Intermediate (WTI) futures settled 70 cents higher, or 1.4%, at $50.63 a barrel. The contract touched $50.94 a barrel, its highest since late February.

Both contracts pared gains after in post-settlement trade as unrest in Washington overtook bullish fundamental news. Both contracts were only 39 cents a barrel higher by 3:46 p.m. EST