HOUSTON, Jan. 12 (Xinhua) -- Oil prices continued to rise during the week ending Jan. 11, with the price of West Texas Intermediate (WTI) for February delivery increasing by 7.6 percent and Brent crude for March delivery increasing by 6.0 percent.
On Monday, oil prices continued to rise, erasing part of the steep losses in December 2018, as the OPEC-led output cut deal, going into effective this month, has begun to play its role. WTI increased by 0.56 dollar to settle at 48.52 dollars a barrel, while Brent crude increased by 0.27 dollar to close at 57.33 dollars a barrel.
OPEC and its oil-producing allies, including Russia, reached an agreement to slash oil production by a total of 1.2 million barrels per day in December, in a bid to shore up falling prices due to fears of oversupply.
On Tuesday, oil prices extended gains. WTI increased by 1.26 dollars to settle at 49.78 dollars a barrel, and the Brent crude rose 1.39 dollars to close at 58.72 dollars a barrel. Crude futures were backed as energy stocks were traded broadly higher on the day.
On Wednesday, oil prices surged, sending the crude in a bull market as the United States reported a draw of crude oil inventories. WTI surged 2.58 dollars to settle at 52.36 dollars a barrel, while Brent crude rose 2.72 dollars to close at 61.44 dollars a barrel.
On Thursday, oil prices edged up, extending its gains for the ninth consecutive day, as Saudi Arabia announced output reduction volumes in January and February. WTI increased by 0.23 U.S. dollar to settle at 52.59 dollars a barrel, while Brent crude rose 0.24 dollar to close at 61.68 dollars a barrel.
On Friday, oil prices dropped, snapping its consecutive rally for nine days, weighed down by the rising greenback and sliding energy stocks due to concerns caused by the ongoing U.S. government shutdown.
WTI fell 1 U.S. dollar to settle at 51.59 dollars a barrel, while Brent crude plunged 1.2 dollars to close at 60.48 dollars a barrel.
Crude futures sank along with the ebbing energy stocks in the U.S. stock market as the U.S. government shutdown has been stretching for three weeks and showed no signs of ending.
Meanwhile, offsetting the adverse political impact, the count of active drilling rigs for oil in the United States declined by four, the second weekly fall, as caution grew among oil producers in their drilling plans for 2019.
The market is waiting to see the impacts of supply cut of OPEC countries, which intends to stabilize the crude oil prices.
Meanwhile, the market is watching closely on the development of trade talks between China and the United States. Analysts believe that a smooth global trade would help encourage oil demand across the world.