24.03.201702:07:00UTC+00Oil Rallies as Saudi Reduces Export to U.S.

Oil prices rose on Friday, lifted by a decline in Saudi's shipment of crude to the U.S. However, the market remains weighed down by oversupply.

Prices for Brent crude futures were up 7 cents trading at $50.63 per barrel. In the U.S., WTI crude futures rose 12 cents at $47.82 per barrel.

Traders said the increase in prices were due to reports that Saudi Arabia's crude supply to the U.S. in March is estimated to drop around 300, 000 bpd from February, in accordance with OPEC's deal to reduce output.

Overseas crude suppliers for the U.S. such as Saudi Arabia have to compete against the increasing drilling activity, which has driven up U.S. oil output by over 8 percent since mid-2016 to just above 9.1 million bpd.

However, Saudi exports continue to be high despite an initiative led by OPEC and supported by other non-OPEC members to lower output during the first half of the year.

The Brent has continuously lost group regardless of the cut efforts as well as other producers intensified efforts to pump crude.