Saudi Arabia is following through on its plans to cut oil production, according to the Wall Street Journal.
WSJ reporter Georgi Kantchev tweeted on Thursday that the kingdom has cut oil output by at least 486,000 barrels per day to 10.058 million barrels per day, citing a “source.”
Oil prices temporarily ticked into the green after the news crossed the wires.
Brent crude oil, the international benchmark, was up by 0.2% at $56.56 per barrel, while West Texas Intermediate crude oil, the US benchmark, gained 0.1% to $53.33 per barrel around 12:35 p.m. ET. But both benchmarks have retraced those gains and now hold little changed for the day around 12:40 p.m. ET.
OPEC and other major oil producers outside the cartel, including Russia, agreed to cut output in late November. The decision reverses a two-year strategy of pumping as much oil as desired and reflects producers’ desire to end the global glut, which has kept prices depressed for the last few years.