Oil prices were steady today as the start of supply cuts by Saudi Arabia and Abu Dhabi supported the market. But doubts that all producers will implement output reductions agreed in a landmark deal last year kept markets from rising further. Brent crude futures, the benchmark for international oil prices, were trading at $56.85 per barrel early this morning, down four cents from their close the previous day. In the US, West Texas Intermediate (WTI) crude futures were at $53.74 a barrel, two cents below their last settlement. Prices rose yesterday following reports of supply cuts from Saudi Arabia and Abu Dhabi coming into effect as part of efforts by the Organisation of the Petroleum Exporting Countries (OPEC) and other producers to curb a global supply glut. Overall supply from OPEC in December fell slightly to 34.18 million barrels per day (bpd) from a revised 34.38 million bpd in November, according to a Reuters survey this week based on shipping data and information from industry sources. While traders said oil markets were well supported by the agreed cuts, they said doubts remained that all producers would fully implement planned reductions.

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